Govt floats mega fertiliser tender, seeks 85 MT of nutrient imports to bolster reserves ahead of main planting season

New Delhi: India has issued a global tender for complex fertilisers—50,000 MT tonnes of NPK (nitrogen, phosphorus and potassium) and 35,000 MT of ammonium sulphate—to bolster the reserves of two key soil nutrients ahead of the main planting season which begins in June.

The tender has been issued by Rashtriya Chemicals and Fertilizers (RCF), one of the three importers. The shipment is expected by May 31 at the east coast of India.

Ammonium sulphate is assuming increasing importance in Indian agriculture, as the government is planning to market it as a better alternative source of nitrogen to partially substitute for urea. The government recently brought it under the fertiliser subsidy scheme from this rabi season. The idea is to subsidise it a little to increase its demand.


While 90% of NPK fertilisers are produced locally, India does not have the critical raw materials such as gas and potash required for domestic manufacturing, making the country heavily dependent on imports.

The development comes after the country issued a global tender through a trading firm earlier this month for 2.5 million tonnes of urea.

Imports of fertilisers in India are handled through a structured electronic bidding process run by government-backed trading firms such as Indian Potash Limited, RCF and National Fertilizers Ltd.

These firms act as the main purchasing entities, on behalf of the government. Global bids are submitted on a government portal. After evaluation, purchase takes place based on several metrics such as prices and date of arrival.

Despite being the third largest producer of fertilisers, India is highly dependent on imports from West Asia via the Strait of Hormuz.

The ongoing war in West Asia has disrupted the global fertiliser market at a time when India is preparing for its largest planting season, when critical crops such as rice, pulses, oilseeds, sugarcane and cotton are grown, making it vital for containing food inflation.