KRIBHCO plans to import up to 4 lakh tonnes of DAP and NPK fertilizers for the upcoming Rabi season to ensure supply. High global prices and potential demand uncertainty due to El Nino weather patterns remain key concerns for the cooperative’s management.
Krishak Bharati Cooperative Limited (KRIBHCO) has announced plans to procure between 3 lakh and 4 lakh tonnes of non-urea fertilizers, specifically Di-Ammonium Phosphate (DAP) and NPK variants. These imports are intended to stabilize the domestic supply chain for the upcoming Rabi crop season, a critical period for India’s agricultural production.
The cooperative is navigating a challenging international market where fertilizer prices remain elevated. Current costs for DAP are reported near $900 per tonne, while NPK variants are priced at roughly $915 per tonne. These high costs are largely driven by ongoing geopolitical instability in West Asia, which affects global supply chains and production logistics. For a cooperative like KRIBHCO, balancing the need for sufficient domestic availability with the financial pressure of high procurement costs is a key operational challenge.
Beyond price volatility, the cooperative is closely watching weather-related risks. The presence of El Nino has raised concerns about potential shifts in agricultural sowing patterns. Reduced rainfall in certain regions could impact the total land area used for farming, which directly influences the amount of fertilizer farmers require. While total fertilizer consumption has shown resilience so far, the cooperative is maintaining a cautious outlook regarding demand for the coming months, as changes in planting schedules and acreage could alter input needs.
To manage these risks, KRIBHCO is leveraging its existing infrastructure and current stock. The cooperative currently holds a buffer stock of 6 lakh tonnes, which is expected to support supplies for the Rabi cycle. KRIBHCO also maintains substantial production capabilities, with facilities in Shahjahanpur and Surat that have a combined annual urea capacity of 35 lakh tonnes. This production base helps the organization maintain a presence in the market beyond just imports.
Financially, KRIBHCO has shown growth, reporting a net profit of approximately ₹630 crore for the 2025-26 fiscal year, a 16 percent increase compared to the previous period. The cooperative is also actively working to diversify its product portfolio by promoting bio-fertilizers and organic manure made from cow dung. This shift aligns with broader efforts to promote balanced nutrient application in soils, a growing priority in Indian agriculture.
For the industry and the farming sector, the key developments to monitor will be the progression of weather patterns and their impact on actual fertilizer application rates. Additionally, the cooperative’s ability to manage its inventory costs while ensuring farmers have enough supply during the peak planting season will remain a central operational focus.