Urea Import Prices Hit 15-Month Low, Easing India’s Fertiliser Subsidy Pressure.

Cheaper Urea Offers Relief, but Rising Sulphur and DAP Costs May Push Subsidy Spending Higher   NEW DELHI: India’s urea import prices fell to $392 per tonne in September, their lowest since June 2025 and nearly 59% below the $947 peak recorded in May 2026. The decline is expected to ease pressure on the government’s fertiliser subsidy budget. However, elevated prices of diammonium phosphate (DAP), muriate of potash (MOP) and sulphur could increase the 2026–27 fertiliser subsidy bill by ₹20,000–25,000 crore above the budgeted ₹2.17 lakh crore. DAP prices declined marginally to $906 per tonne in September, while sulphur prices exceeded $1,000 per tonne, up more than 200% year on year. Supply disruptions in West Asia and constraints affecting Russian energy infrastructure have tightened sulphur availability. Improved global supply, renewed Chinese urea exports and diversified import sources have supported lower urea prices. Despite higher input costs, farmers are expected to continue receiving fertilisers at subsidised rates, and adequate urea stocks are available for the upcoming Rabi season.