New Delhi, July 16 -- India is moving to expand domestic urea production as a widening supply gap leaves it dependent on imports for a key farm input. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on 15 July approved the Department of Fertilizers' proposal for the National Investment Policy for Urea-2026 (NIPU-2026).

India's annual urea demand is around 40 million tonnes (mt) and growing at about 5% a year. Domestic production meets roughly 30 mt, leaving about 10 mt to be imported. Geopolitical disruptions, including the war in West Asia, volatile natural gas prices and rising global costs have underscored the risks of relying on overseas supplies.

The new policy seeks to attract fresh investment i...