NFL's urea import tender gets lowest bid of $445 per tonne amid sharp fall in global prices

New Delhi: State-owned National Fertilizers Ltd (NFL), which recently floated a tender to import 1.7 million tonnes of urea, has received bids for over 6 million tonnes with the lowest rate of about USD 445 per tonne from global trading companies, according to sources.

The rates offered in this latest tender are more than 50 per cent lower than the prices quoted in the tender floated by Indian Potash Ltd (IPL) in April, due to a fall in global urea prices.

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India imported more than 10 million tonnes of urea last fiscal to meet domestic demand.

On May 27, the NFL, on behalf of the Department of Fertilizer, Ministry of Chemicals and Fertilizers, floated a global tender to purchase prilled/ granular urea (Bulk) 46 per cent nitrogen minimum (fertilizer grade) for the earliest arrivals in India.

Sources said the tender, which was opened on June 8, has received a good response as bidders offered to supply more than 6 million tonnes of urea.

The lowest bid is USD 445 per tonne. In the tender floated by the IPL, the rates were more than US 900 per tonne.

The department would take a final decision on how much quantity to import against this tender, sources said.

Urea prices in the global markets have come down significantly after the easing of export restrictions by China, they added.

According to an industry official, the weekly rate currently is USD 577 per tonne, while the rate on Wednesday stood at USD 450-455 per tonne.

In view of the surge in urea prices following the West Asia conflict, there has been apprehension that the government's fertilizer subsidy would rise substantially.

According to government sources, the Department of Fertilizer has approached the finance ministry to increase the fertiliser subsidy by 100 per cent from the Rs 1.71 lakh crore budgeted for the 2026-27 fiscal.

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The fall in global urea prices may help in containing the increase in fertiliser subsidy and also securing the soil nutrients for the rabi (winter-sown) season.

On Monday, Aparna S Sharma, additional secretary in the Union Ministry of Chemicals and Fertilisers, said, "For kharif 2026, the fertiliser requirement has been reassessed by the Department of Agriculture at 383.9 lakh tonnes and against this, the stock as on today is 197.56 lakh tonnes."

She said the government has enough stock to meet demand for the ongoing Kharif sowing season.

The country's urea production has increased from 225 lakh tonnes during 2014-15 to 306.67 lakh tonnes in 2024-25.

At present, the MRP of neem-coated urea is Rs 242 per bag (45kg), while the DAP is being sold at Rs 1,350 per bag (50kg).

Total domestic production of fertilizers, including urea, DAP, NPKs, and SSP, has increased from 433.29 lakh tonnes in 2021 to a record 524.62 lakh tonnes in 2025. Nearly 73 per cent of the country's total fertiliser requirement last calendar year was met through domestic production.

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