Production of these complex fertilisers fell 28% to 1,919,700 tonnes from 2,663,900 tonnes a year earlier, while imports slipped 48.5% to 491,000 tonnes from 954,000 tonnes, said industry officials, citing data from the Fertiliser Association of India (FAI). They said ammonia and sulphur prices have nearly doubled, making manufacturing and imports less viable.
“A sharp spike in key raw material prices have made import and production of complexes unviable,” said a senior executive at a top fertiliser producer, highlighting companies have already raised prices, but further increases would make these fertilisers unaffordable for farmers.
ET BureauNP/NPK fertiliser production falls 28% and inbound shipments slip 48.5%
Unlike urea and di-ammonium phosphate (DAP), retail prices of NP and NPK fertilisers aren’t regulated by the government. Instead, manufacturers are compensated under the nutrient based subsidy (NBS) scheme, under which the government fixes subsidies for individual nutrients, while companies determine the maximum retail price.
Industry executives said the subsidy rates, last revised in April 2026 prior to escalation of the West Asia conflict, no longer reflect the current raw material prices. As a result, both domestic production and imports have become less viable, affecting the supply of fertilisers widely used for pulses, oilseeds, cotton and maize.
In April, the government approved a 10-21% increase in nutrient subsidy rates for the 2026 kharif season, taking total subsidy outlay to ₹41,534 crore. However, fertiliser manufacturers say the revision has been overtaken by subsequent increases in global input costs.
The landed price of ammonia nearly doubled to around $900 per tonne, from $400-500 per tonne prior to the war, before easing slightly.