Govt trims fertilizer demand estimate after IMD downgrades monsoon forecast
Stocks currently stand at 19.98 million tonnes, more than 52% of the revised seasonal requirement, significantly ahead of the typical 33% benchmark at this time in the season.
India reduced its fertilizer demand estimate for the kharif season after the weather office downgraded its monsoon forecast, adding to pressure on an agriculture sector that is coming to grips with disruptions from the West Asia war.
The India Meteorological Department (IMD) revised its 2026 south-west monsoon forecast to 90% of the long-period average (LPA), down from 92%, prompting the department of agriculture and farmers welfare to pare the overall fertilizer requirements to 38.39 million tonnes from an earlier 39.05 million tonnes. Urea demand has been trimmed by roughly 400,000 tonnes to 19 million tonnes, while diammonium phosphate (DAP) demand was cut to 5.62 million tonnes from 5.91 million tonnes.
"The Department of Agriculture and Farmers Welfare (DA&FW), in consultation with states, has reassessed the fertilizer requirement for the kharif season, lowering demand estimates for key nutrients due to evolving agricultural conditions," said Aparna S. Sharma, additional secretary, department of fertilizers, while addressing the mediapersons during the interministerial briefing on recent developments in West Asia.
Despite the demand reduction, the government has said there is ample supply. Stocks currently stand at 19.98 million tonnes, more than 52% of the revised seasonal requirement, significantly ahead of the typical 33% benchmark at this time in the season. A global tender for an additional 1.7 million tonnes of urea has also been floated, while shipments of 2.5 million tonnes of urea, 1.5 mt of DAP and 1 mt of NPK (nitrogen, phosphorus, potassium) fertilizers are expected at Indian ports in June and July.
Prices of food commodities stable
Meanwhile, the department of consumer affairs informed that prices of food commodities are stable. Price trends across key food categories such as cereals, milk, pulses, and sugar remain stable. Among the vegetables, potato and onion prices are range-bound, helping maintain overall stability in the food basket. No unusual price volatility in the food commodities.
"The government has set a price stabilisation buffer target of 200,000 mt for onions in 2026-27. Procurement commenced on 15 May and is expected to support mandi prices and help moderate price volatility. To further encourage timely procurement amid rising arrivals, the procurement price was increased with effect from 26 May," said Anupam Mishra, additional secretary, department of consumer affairs.
Joint secretary Sujata Sharma, spokesperson for the ministry of petroleum and natural gas, said demand for petrol and diesel had not decreased in May, in light of the government's call for austerity measures.
"There have been efforts to manage domestic LPG demand in various ways—booking time gap, etc. So, in that domain, there has been a reduction in demand. But for MS (motor spirit or petrol) and HSD (diesel), there has been no reduction in consumption," said Sharma to a direct query on the reduction of fuel demand due to austerity measures.
During May, the sale of petrol and diesel has increased by more than 30% in many districts, the Union petroleum ministry said in a statement on Monday. However, the ministry added that adequate stocks of petrol and diesel were available at all retail outlets. Even as aviation turbine fuel (ATF) prices were kept unchanged in the June revision, Sharma said state-run oil marketing companies were bearing a loss of ₹30 per litre on jet fuel.
Over 262,000 credit applications received under ECLGS 5.0
Manoj Muttathil Ayyappan, joint secretary in the department of financial services, finance ministry, said that more than 262,800 credit applications had been sourced under the Centre’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 scheme as on 29 May. The scheme received the Cabinet’s approval on 5 May. Ayyappan said these applications covered credit of ₹1.71 trillion. “Of course, most of this has come in the last 2-3 days. Of this, ₹35,194 crore has been sanctioned, and ₹15,720 crore worth of guarantees have also been issued,” he said. There have been no reports of loan default stress increasing, especially in the country's MSME sector, in the quarter ending March, said Ayyappan.
About the Authors
Vijay C. Roy is a journalist with over 21 years of experience covering various news beats across different organisations such as Business Standard and The Tribune. In the past, he has covered beats such as finance, auto, MSME, commodities, FMCG, pharmaceutical, agriculture, IT/ITES, infrastructure and start-ups. He joined Mint in February 2025, and covers agriculture, food processing, fertilizers, environment and climate change, bringing over two decades of experience reporting on farm policy, food inflation, crop trade, and rural livelihoods.<br><br>Vijay’s areas of reporting include food security and climate change policies, focusing on their impact on different stakeholders and their implications. His expertise lies in simplifying complex agri-economic issues such as edible oil import dependence, cotton and wheat trends, fertiliser subsidies, and climate-related risks. He has covered key developments including global supply disruptions and evolving trade policies, offering both macroeconomic perspective and field-level context. Known for his credible and balanced reporting, he follows a rigorous, fact-based approach that prioritises accuracy and context. He is driven by a commitment to public interest, aiming to make critical agricultural and economic issues accessible while contributing to informed policy and industry discussions.
Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.
Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.
MoreWait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.