Why in news?

India witnessed an excellent southwest monsoon this year, with June–August rainfall 6.1% above the historical average and well-distributed across regions.

Rainfall exceeded norms in June (8.9%), July (4.8%), and August (5.5%), while May also recorded 106.4% above-normal rain. Out of 36 meteorological subdivisions, 33 received normal rainfall, with deficiencies seen only in Bihar, Assam, Meghalaya, and Arunachal Pradesh.

The timely and evenly spread rains have spurred higher kharif sowing: rice acreage rose 7.6% to 420.4 lakh hectares, while maize cultivation jumped 11.7% to 93.3 lakh hectares. This, in turn, has boosted fertiliser sales as higher crop acreages drove demand for essential fertilizers.

What’s in Today’s Article?

• Fertiliser Sales Surge with Good Monsoon
• Rising Demand vs. Limited Supply
• Policy Lessons for Fertiliser Management

Fertiliser Sales Surge with Good Monsoon

• Between April–July 2025 and the same period in 2024, most fertilisers — including urea, single super phosphate (SSP), muriate of potash (MOP), and complex blends — recorded double-digit growth in sales.
• Dip in DAP Sales, Rise of Alternatives
  • The only exception was diammonium phosphate (DAP), whose sales fell by 12.8%.
  • This decline continues a trend from recent years, driven by supply shortages.
  • Farmers have increasingly substituted DAP with other phosphorus-rich fertilisers such as SSP and the complex 20:20:0:13.
• 20:20:0:13 Emerges as a Major Player
  • With 20% phosphorus content — less than DAP’s 46% but more than SSP’s 16% — 20:20:0:13 has emerged as a popular choice.
    • The ratio 20:20:0:13 is commonly used to represent the composition of a specific type of fertilizer, known as Ammonium Phosphate Sulphate (APS).
    • APS provides 20% Nitrogen (N), 20% Phosphorus pentoxide (P₂O₅), and 13% Sulphur (S), with no potassium (K).
  • Its sales reached a record 69.7 lakh tonnes in 2024–25, making it India’s third-largest selling fertiliser after urea (387.7 lt) and DAP (92.8 lt).

Rising Demand vs. Limited Supply

• Despite a surge in fertiliser demand during the good monsoon, supply has not kept pace.
• Domestic urea production in April–July 2025 fell to 93.6 lt from 102.1 lt the previous year, while DAP output remained flat at 13.7 lt.
• Production rose modestly for NPKS complexes (35 lt to 37.4 lt) and SSP (17.1 lt to 19.1 lt), but imports of urea and DAP also declined, worsening the gap.
• 
• Sharp Stock Depletion
  • Government data show steep declines in fertiliser stocks as of August 1, 2025.
  • Urea stocks dropped to 37.2 lt from 86.4 lt a year earlier.
  • DAP (13.9 lt vs 15.8 lt), complexes (35 lt vs 47 lt), and MOP (6.3 lt vs 8 lt) also saw lower inventories.
  • Only SSP stocks saw a marginal rise to 20.7 lt.
• Peak Season Shortages
  • The supply crunch hit hardest during July–August, peak consumption months for kharif crops.
  • Farmers need phosphatic fertilisers like DAP at sowing for root growth, while urea is applied in split doses later.
  • Reports of farmers queuing for hours to secure urea bags highlighted the shortages.
  • Industry experts noted that fear-driven pre-stocking worsened the situation, amplifying the actual shortage during the critical sowing season.

Policy Lessons for Fertiliser Management

• The government appears to have underestimated fertiliser demand this kharif, particularly for rice and maize, which are nitrogen-intensive crops requiring multiple urea applications.
• In contrast, soyabean and pulses, which need little urea, saw reduced acreage this season.
• With kharif consumption peaking, the focus now shifts to ensuring adequate fertiliser supplies for the rabi season, supported by strong water availability in reservoirs and aquifers.
• Falling imports of urea and DAP since 2023–24, largely due to Chinese supply curbs, may ease with the recent thaw in India–China ties.
• Experts suggest moderating usage by substituting some urea with ammonium sulphate and restricting DAP primarily to rice and wheat, while promoting complexes for other crops to ensure sustainability.