Industry information released on Monday showed that India’s urea purchases from other countries more than doubled to 7.17 million tonnes during the first eight months of the current financial year because the amount made in the government went down, which emphasises how much the nation depends on getting supplies from abroad to meet the needs of farmers.
According to information from the Fertiliser Association of India (FAI), urea purchases from other countries rose by 120.3 per cent to 7.17 MT between April and November 2024-25, compared to 3.26 MT during the same time last year.
The amount of urea made in the country went down by 3.7 per cent to 19.75 MT during that same time period. The information showed that, overall, urea sales went up by 2.3 per cent to 25.40 MT.
FAI Chairman S. Sankarasubramanian said in a statement that, although sales have increased through organized planning, the need to obtain supplies from other countries — especially for urea and DAP — highlights the importance of handling the supply chain strategically.
Just in November, urea purchases from other countries went up by 68.4 per cent to 1.31 MT, compared to 0.78 MT in November 2024. Urea sales went up by 4.8 per cent to 3.75 MT in November compared to the year before.
Di-ammonium phosphate (DAP), another important nutrient for soil, also saw an increased need to get it from other countries. DAP purchases from other countries now make up 67 per cent of the total supply, up from 56 per cent last year, even though sales remained steady at 7.12 MT between April and November of the 2025-26 financial year.
The amount of DAP made in the country went down by 5.2 per cent to 2.68 MT. The FAI said that the increase in purchases from other countries shows India’s plan to make sure there is always enough fertilizer available when crops need nutrients the most.
Complex NPK fertilizers showed strong growth, with the amount made going up by 13.8 per cent to 8.15 MT, and purchases from other countries almost doubled to 2.72 MT. Sales stayed at 10.38 MT between April and November of the current financial year.
Muriate of potash sales went up by 8.6% to 1.55 MT during the same time. In a positive sign for production in the country, single super phosphate (SSP) sales went up by 15 per cent to 4.16 MT, with the amount made going up by 9.5 per cent to 3.97 MT.
The FAI said that the SSP performance shows that farmers trust fertilizers made in the country and proves that the sector can provide phosphatic nutrients in the country at a good price and quality.
FAI Director General Dr Suresh Kumar Chaudhari said that there are two main takeaways from this information. He said that the first is the change towards managing supply by getting nitrogen and phosphate nutrients from other countries. The second is the strong performance of phosphatic fertilizers made in the country, like SSP, which have seen a 15 per cent increase in sales.
The central government subsidies urea, and prices have stayed the same at Rs 242 per 45 kg bag (not including neem coating costs and taxes) since November 1, 2012. Urea, which is considered a controlled item under the New Urea Policy, gets much higher subsidies compared to phosphatic fertilizers.
In a strategic bid to manage rising prices and ensure ample domestic supply, the Indian government has extended its duty-free import policy on yellow peas until March 31, 2026. The policy, originally introduced in late 2023 and renewed several times, is now set to continue into the next financial year following the latest order issued on May 30, 2025.
Yellow peas have quickly become a key element in India’s pulse imports, with India importing 2.9 million tonnes of the legume in 2024—an impressive 45% share of total pulse imports. This surge is notable given India did not import yellow peas at all in 2023. The country has sourced most of these imports from Canada and Russia, reflecting its reliance on the global pulse market to keep prices in check and supplies stable.
The nationwide policy has played a vital role in controlling food inflation, especially as overall pulse import volumes soared to an estimated 6.63 million tonnes in 2024, almost twice the 3.31 million tonnes brought in during 2023. This spike surpassed even the previous import record set in 2017.
The government’s move aligns with expectations of a stronger domestic harvest, supported by favorable rains and improved sowing across major producing states. Official estimates forecast tur output to reach 35.02 lakh metric tonnes, up 2.5% from last year. Kharif moong is projected at 13.83 lakh metric tonnes, a 20% increase over the previous year, while chana and masur production are also expected to rise.
By continuing duty-free yellow pea imports while boosting homegrown production, the government seeks to maintain price stability for pulses and safeguard food security for millions. These measures are especially crucial for meeting the country’s dietary needs as demand for pulses continues to rise.
The new India-US trade deal is expected to have mixed effects for Indian farmers and US companies, especially in the agriculture and dairy sectors.
Impact on Indian Farmers:
High Risks for Small Farmers: If India lowers tariffs on US dairy and agricultural products, millions of small Indian farmers could be at risk.
Even a small increase in US imports—just 5% market share—could displace 3–4 million marginal dairy farmers. The US has a significant productivity advantage, with much higher milk yields per cow than India.
Threat from Subsidized and GM Crops: US agriculture is heavily subsidized, and American companies are pushing for access for genetically modified (GM) crops like soybeans and maize. Experts warn that allowing
these imports could cause a crash in prices for Indian farmers, especially for the 24 million who grow soybeans and maize. This could further impoverish farmers, as domestic prices may fall below government-set minimum support prices.
Livelihoods at Stake: Over 700 million Indians depend on agriculture for their livelihood. Opening up the market to US agricultural products could lead to dumping of cheap, subsidized goods, threatening food
security and rural incomes.
Impact on US Companies:
Market Access and Competitiveness: US companies stand to gain significant new access to India’s vast market of 1.4 billion consumers. Lower tariffs would help American businesses compete more effectively,
especially in sectors like agriculture, dairy, automobiles, and industrial goods.
Potential for Growth: The US is particularly interested in exporting more farm products such as maize, soybeans, cotton, and dairy to India, which could help reduce the US trade deficit with India.
Regulatory Barriers Remain: While tariff reductions are helpful, US companies still face challenges from India’s non-tariff barriers and strict quality control regulations, which can limit the actual impact of
the deal.
Summary Table:
Group
Potential Benefits
Key Risks/Challenges
Indian Farmers
Avoidance of steep US tariffs on exports
Loss of income, price crashes, competition from subsidized/GM US imports, threat to small/marginal farmers
Indian non-tariff barriers, regulatory hurdles, limited scope if India protects sensitive sectors
Overall :
The deal’s main immediate benefit for India is avoiding a steep 26% US tariff on its exports, which would help Indian exporters remain competitive. However, unless India maintains protections for its agriculture and dairy sectors, the
livelihoods of millions of small farmers could be at risk. For US companies, the deal could open up new opportunities in India, but success will depend on how much India is willing to open its markets and relax regulatory barriers.
US, India Rush to Finalize Tariff-Reducing Trade Deal as Disputes Over Dairy and Agriculture Persist
With just days left before a major tariff deadline, the United States and India are working around the clock to finalize an interim
trade deal that could lower tariffs and boost economic ties. However, talks remain stuck on sensitive issues—especially agriculture and dairy—where both sides are refusing to back down.
What’s at Stake?
The US has threatened to raise tariffs on Indian goods to 26% if a deal is not reached by July 9. Currently, a temporary 10% tariff is in place to allow time for negotiations.
Both countries want to avoid these higher tariffs, which would hurt exporters and consumers on both sides.
Key Disagreements
The US is pushing India to open its markets for American farm products, including genetically modified crops and dairy. These are politically sensitive in India, where the dairy sector supports over 80 million people, many of them small farmers.
India has firmly refused to allow more US dairy imports or genetically modified crops, citing risks to food safety and the livelihoods of rural families. “There is no question of conceding on dairy. That’s a red line,” said a senior Indian official.
India also wants the US to lower tariffs on its labor-intensive exports like garments, footwear, and leather, which are important for jobs in India.
Progress and Hopes
Despite the deadlock on agriculture, negotiators have made progress in other areas, such as reducing tariffs on walnuts, cranberries, medical devices, automobiles, and energy products from the US.
Both sides see this interim deal as a first step towards a broader agreement that could double trade to $500 billion by 2030.
Why Is This Important?
The deal is not just about economics. Both countries see it as a way to strengthen their partnership at a time of global uncertainty and competition.
US President Donald Trump has said he is optimistic about reaching a deal that will help American companies compete in India’s vast market of 1.4 billion people.
What Happens Next?
Indian negotiators have extended their stay in Washington, hoping to bridge the gap before the July 9 deadline.
If no deal is reached, tariffs will rise, making many products more expensive and possibly straining relations between the two countries.
As the clock ticks down, both Washington and New Delhi are under pressure to find common ground, without compromising on their core interests. The outcome will affect not just trade, but the broader relationship between two of the world’s largest democracies.
Basmati Exports to Iran Halt Amid Conflict; Industry Shifts Focus to India-Managed Chabahar Port
Introduction: As tensions escalate between Iran and Israel, India’s basmati rice exports to Iran have come to a halt, while shipments to the Middle East have become more expensive. The Indian government is now looking to strengthen connectivity through the India-managed Chabahar Port to safeguard trade routes.
Details: The ongoing Iran-Israel conflict has started to impact Indian trade, particularly basmati rice exports to Iran, which have completely stopped, according to industry sources. Exporters are now facing higher freight and insurance costs when shipping to West Asian markets, raising concerns across India’s rice export sector.
In response, the Ministry of Commerce recently held a high-level meeting with shipping lines and container associations to assess the unfolding situation. Officials confirmed that the Strait of Hormuz—a critical trade route—is still stable and under close monitoring through a ship reporting system.
However, if the conflict continues beyond June 23, trade movements to Russia, Central Asian nations (CIS), and Afghanistan through Iran’s Bandar Abbas port could also be affected. The Federation of Indian Export Organisations (FIEO) noted that this port remains crucial, especially for accessing landlocked nations like Uzbekistan, which are now cut off from Karachi due to rising regional tensions.
As a long-term solution, exporters and industry leaders are now urging the government to enhance infrastructure and logistics at the Chabahar Port, managed by India. Chabahar provides an alternative route with direct links via Dubai and India’s Kandla Port, reducing dependency on conflict-prone areas.
Additionally, trade dynamics are shifting across the region. Freight charges and transit times have increased for key Red Sea ports like Aqaba, Beirut, and Lattakia, with goods being rerouted to safer ports such as Jeddah and Alexandria. Interestingly, exports to Saudi Arabia are witnessing a rise, driven by demand from the ongoing Neom city megaproject.
With geopolitical uncertainties continuing, the industry is calling for urgent action to improve multi-modal connectivity, diversify trade routes, and minimise the impact of global conflicts on India’s crucial agri-exports. The spotlight is now on Chabahar to serve as a resilient gateway for India’s exports to Central Asia and beyond.
Introduction: Andhra Pradesh CM Chandrababu Naidu has urged Union Home Minister Amit Shah to roll back the Centre’s recent decision to reduce import duty on crude palm oil (CPO) by 10%. He warned that this move could severely affect farmer incomes and derail the country’s edible oil self-reliance efforts.
Andhra Pradesh Chief Minister N. Chandrababu Naidu has raised strong objections to the Central Government’s decision to reduce import duty on crude palm oil (CPO) by 10%, calling it a setback for Indian oil palm growers. In a formal letter submitted to Union Home Minister Amit Shah on June 20, 2025, Naidu urged for an immediate rollback of the policy.
The Centre’s decision, notified on May 30, comes at a crucial time—right in the middle of the oil palm plantation season. Naidu warned that the timing of the duty cut could lower the market price of domestic palm oil, demoralising existing growers and discouraging new farmers from entering this high-potential sector.
“This decision may seem helpful in the short term, but it undermines the long-term vision of India’s edible oil self-sufficiency under the National Mission on Edible Oils – Oil Palm (NMEO-OP),” the CM stated.
Andhra Pradesh is at the forefront of India’s oil palm revolution, accounting for over 50% of the total cultivated area, with 1.74 lakh farmers across 2.49 lakh hectares. Between 2021 and 2025, the state has covered 67,727 hectares and aims to add another 50,000 hectares this year under the NMEO-OP.
Naidu pointed out that Andhra Pradesh has been proactive in promoting oil palm cultivation by offering incentives, building infrastructure, and using AI-powered tools to support farmers. “Decisions like this could break the trust that has been built over the years with our farmers,” he warned.
The letter was submitted in person by a TDP delegation led by MP Lavu Sri Krishna Devarayulu and Union Civil Aviation Minister K. Rammohan Naidu, highlighting the state’s deep concern over national policy decisions that could undo years of progress in oil palm farming.
With stakes high for farmer income and the success of India’s edible oil mission, the ball is now in the Centre’s court to decide whether economic stability for growers will take precedence over short-term import cost management.
