India’s policy on urea | Explained
The Indian government has approved the National Investment Policy for Urea (NIPU)-2026 to boost domestic production and reduce reliance on imports amid global supply chain concerns. The policy introduces structural financial reforms, including a defined Return on Equity band and fixed-cost transparency, to incentivize new gas-based manufacturing units.
Amid concerns of fertiliser shortage during the ongoing kharif season due to the situation in West Asia, greater demand because of El Niño and complaints of over-use of chemical fertilisers such as urea, the Cabinet Committee on Economic Affairs recently approved the National Investment Policy for Urea (NIPU)-2026.
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