Urea import prices hit 15-month low, but fertiliser subsidy burden may rise marginally due to higher DAP & Sulphur rates

New Delhi: The import price of urea fell to $392 per tonne in Sept, its lowest level since June 2025 and nearly 59% below the peak of $947 per tonne recorded in May this year. This is expected to ease pressure on govt’s fertiliser subsidy bill, which was expected to rise sharply amid the West Asia crisis.However, elevated prices of diammonium phosphate (DAP), muriate of potash (MOP) and sulphur are likely to push the subsidy outgo in 2026-27 by Rs 20,000-25,000 crore above the Rs 2.17 lakh crore budget allocation. This is still much less than the govt’s internal estimates during the major supply disruptions in April-May, which had pegged the fertiliser subsidy bill at around Rs 3 lakh crore.Govt data show that the import price of diammonium phosphate (DAP) declined by barely 3% to $906 per tonne in Sept from its peak of $933 in June, while sulphur prices have surged to a record level above $1,000 per tonne, registering over 200% increase compared to last year. However, this will not impact farmers, who will continue to get these fertilisers at subsided rates.Urea import prices have fallen sharply due to easing international prices and improved supply with India diversifying sources. One of the main reasons is China renewing urea exports, which has increased competition among sellers. TOI has learnt that there is an overwhelming response to recently issued global tenders. “We don’t expect urea prices to go up in near future and India has good stock of the fertiliser for the upcoming Rabi season,” said an industry insider.To reduce dependency on only a few countries, India has diversified import of sugar from nations, including Oman, Malaysia, Vietnam, Georgia, Nigeria, Russia, Finland, Egypt, Algeria, Turkey, and the Netherlands.In the case of DAP, the import prices have fallen marginally from the peak of $933 per tonne in May to $906 in Sept, which is still higher than a year ago, because of sulphur shortage, rising phosphoric acid costs and supply disruptions keeping phosphatic fertiliser production expensive.As far as surge in sulphur import price is concerned, this has been primarily because the West Asia conflict has disrupted supplies from the world’s largest exporting region and attacks on Russian energy infrastructure have further tightened availability.You use AI every day. Now get your AI Quotient. Take the AIQ test.