# Weak rupee may raise fertiliser import, production costs and subsidy load | Industry News - Business Standard

> Indian fertilizer importers and producers face higher costs as the rupee depreciates sharply, with urea imports between April and October 2025 up about 137 percent year on year and DAP imports up 69 percent. Retail prices for urea and DAP are fixed, so the added cost must be absorbed through a larger government subsidy. Urea production costs rise because most of its gas feedstock is dollar-priced.

- Date: 2025-12-04 · published 2025-12-04T12:00:00.000Z
- Category: macro · region India · magnitude medium
- Page: https://feedsoft.ai/events/5187-weak-rupee-may-raise-fertiliser-import-production-costs-and-subsidy-load
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [DAP](https://feedsoft.ai/c/DAP.md), [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Strong Indian import demand combined with a weaker rupee supports global urea and DAP prices as buyers pay more in dollar terms. A larger subsidy bill signals sustained import needs that tighten global nitrogen and phosphate supply.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2020-11-27 | [Weak rand results in big fertiliser price increase](https://feedsoft.ai/events/4396-weak-rand-results-in-big-fertiliser-price-increase.md) | +8.7% | +6.6% |
| UREA | 2020-06-19 | [Sharp increase in SA fertiliser prices due to weak rand](https://feedsoft.ai/events/52920-sharp-increase-in-sa-fertiliser-prices-due-to-weak-rand.md) | +0.6% | +6.2% |
| UREA | 2020-04-01 | [Fertiliser prices rise on stronger demand and weaker currency - Farmers Weekly](https://feedsoft.ai/events/53568-fertiliser-prices-rise-on-stronger-demand-and-weaker-currency-farmers-weekly.md) | 0.0% | -1.7% |
| UREA | 2022-08-25 | [Yara cuts cast doubt on Europe's fertiliser production](https://feedsoft.ai/events/40357-yara-cuts-cast-doubt-on-europe-s-fertiliser-production.md) | +19.3% | +12.8% |
| UREA | 2022-10-01 | [Most Wholesale Nitrogen Fertilizer Prices Rise in August on Wave of Production Curtailments at European Plants](https://feedsoft.ai/events/39888-most-wholesale-nitrogen-fertilizer-prices-rise-in-august-on-wave-of-production.md) | +2.0% | -12.6% |
| DAP | 2020-06-19 | [Sharp increase in SA fertiliser prices due to weak rand](https://feedsoft.ai/events/52920-sharp-increase-in-sa-fertiliser-prices-due-to-weak-rand.md) | +2.4% | +12.0% |
| DAP | 2022-01-05 | [Little relief in sight on fertiliser supply and price - Farmers Weekly](https://feedsoft.ai/events/4589-little-relief-in-sight-on-fertiliser-supply-and-price-farmers-weekly.md) | -1.4% | -3.5% |
| DAP | 2021-10-22 | [Fertiliser market price rise: wait or buy now?](https://feedsoft.ai/events/44888-fertiliser-market-price-rise-wait-or-buy-now.md) | -0.5% | +4.3% |

## Sources

- business-standard.com: https://www.business-standard.com/industry/news/weak-rupee-fertiliser-imports-domestic-production-costlier-125120401287_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.