Weak rupee may raise fertiliser import, production costs and subsidy load

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.