Whalesbook
Urea Tender Draws Competitive Bids
National Fertilizers Limited (NFL) opened financial bids for its global tender to import 1.5 million tonnes of urea, receiving a lowest offer of $424.80 per tonne for delivery on India's west coast ports. Koch Fertilizer LLC emerged as the lowest bidder for west coast ports, quoting $424.80 per tonne for delivery at Pipavav, Deendayal (Ex-Kandla), and Mundra in Gujarat. The same bidder quoted $426.80 per tonne for delivery at east coast ports like Kakinada and Vizag in Andhra Pradesh.
The tender, floated on December 17 and with bids closing January 2, saw financial bids opened on January 5. The highest bid came in significantly higher at $523 per tonne from Suvarnabhoomi Enterprises for east coast delivery. NFL is importing the urea on behalf of the Indian government, which supplies the crucial fertilizer to farmers at a highly subsidized rate.
Import Surge Driven by Demand
This tender follows a period of rising urea imports into India. According to the Fertiliser Association of India (FAI), urea imports surged 120 per cent to 7.17 million tonnes during April–November of the 2025-26 fiscal year. This increase was primarily to meet higher demand and compensate for a decline in domestic production.
While urea sales reached 25.40 million tonnes, a 2.3 per cent increase from the previous year, domestic production dropped by 3.7 per cent to 19.75 million tonnes. Suresh Kumar Chaudhari, Director-General of FAI, noted a structural shift towards import-driven supply management for nitrogen nutrients and strong performance from indigenous phosphatic fertilizers, contributing to sales growth.
Government's Subsidized Strategy
The government's strategy involves securing critical nutrients through planned imports, evidenced by this tender, while also strengthening domestic production capacity for other fertilizers. The urea supplied to Indian farmers is heavily subsidized, costing ₹267 for a 45-kg bag, which translates to approximately ₹5,933 per tonne. This is drastically lower than the current lowest rate for imported urea, which hovers around ₹38,232 per tonne.