Farmers across five states, including Punjab and Haryana, protested on Monday (June 8) against what they claimed were inadequate supplies of urea and diammonium phosphate (DAP) fertilisers, as the paddy sowing season begins.

In Punjab alone, demonstrations were held at 74 locations under the banner of the Kisan Mazdoor Morcha (KMM). Punjab BJP President Sardar Kewal Singh Dhillon also wrote to JP Nadda, Union Minister for Chemicals and Fertilisers, on Thursday, strongly urging the government to ensure uninterrupted and timely supply.

While Punjab witnesses agitations over fertiliser shortages almost every year, the West Asia war is a novel factor this time. Here is what to know.

Punjab’s fertiliser demand is highly seasonal and concentrated around crop sowing periods. Demand for DAP peaks during wheat sowing in October-November (rabi season), while demand for urea rises sharply during the paddy cultivation between June and August (kharif season).

According to sources, the Centre releases subsidised fertiliser stocks in batches rather than supplying the entire requirement at one time. The Union government regulates fertiliser distribution and allocates it to states, but farmers often complain that stocks either arrive late or do not match local demand.

Even minor supply delays can trigger long queues and local shortages as thousands of farmers attempt to purchase fertilisers within a narrow window. They can lead to panic buying, further straining supplies. Farmer organisations have periodically alleged hoarding by dealers and the bundling of fertilisers with other products.

India heavily depends on imports of phosphatic fertilisers and raw materials. Much of the supply chain is linked to the Gulf region and has been affected by the ongoing conflict and disruptions.

The share of Gulf Cooperation Council (GCC) countries – Oman, Qatar, Saudi Arabia, United Arab Emirates (UAE) and Bahrain – in India’s urea imports was roughly 75% during 2024-25. In DAP, too, the largest source of India’s imports was Saudi Arabia.

International prices of both DAP and urea have risen sharply in recent months. As The Indian Express recently reported, “Rising global costs of fertilisers amid a supply crunch are likely to result in a subsidy burden of almost Rs 3.4 lakh crore, or an almost 100 per cent increase compared with the Budget estimate of Rs 1.7 lakh crore, according to top government sources.”

However, the Centre had said that supply will be maintained despite higher import costs.

According to rough estimates, 30 lakh hectares are expected to come under paddy cultivation during this kharif season. The total urea requirement is estimated at 16 lakh metric tonnes (LMT).

Punjab Agriculture Minister Gurmeet Singh Khudian told The Indian Express: “We are receiving it (fertiliser supply) in batches. Initially, we got around 3.75 LMT and then over 4.5 LMT, and after adding the latest supplies, over 11 LMT of urea has already been received from the Centre government… There is no doubt that they try to delay supplies towards Punjab, but the condition as of now seems to be satisfactory, and we are hopeful that the remaining supplies will also come soon.”

While urea is the principal fertiliser required for paddy cultivation, around 2 LMT of DAP is also needed. Though Khudian did not disclose exact figures, he said that DAP was adequately available.

What are farmers alleging against fertiliser dealers?

One of the major grievances raised by farmers concerns the alleged compulsory purchase of additional products along with fertiliser.

Farmers claim that dealers often insist that buyers purchase a bottle of nano urea, potash or other biostimulants along with every two bags of urea or DAP. They allege that fertiliser supplies are withheld unless these products are purchased.

Sukhjinder Singh Rajan, a farmer from Abohar, said, “The bio-products arrive before the main supplies” in the market, and that they had raised the issue in the past to no avail. Union Agriculture Minister Shivraj Singh Chouhan, too, had earlier directed states to check such unfair trade practices.

The financial burden is significant for farmers. A subsidised 45-kg bag of urea costs about Rs 267, while a 50-kg bag of subsidised DAP costs around Rs 1,350. However, 400 ml nano urea bottles each cost between Rs 225 and 250. Since a farmer typically receives one bottle for every two bags of fertiliser and usually applies around three urea bags per acre, the additional expense can add up considerably.

Defending the Centre’s fertiliser policy, former Punjab BJP president Sunil Jakhar highlighted the extent of government subsidies.

“India is importing urea for nearly Rs 100 per kilogram, while farmers are being provided it for only Rs 6 per kilogram. The Centre is providing subsidies of Rs 4,250 per bag (45 kg) on urea and Rs 3,200 per bag on DAP fertilisers,” he said. Notably, the MRP of a 45-kg bag of urea has remained almost the same since November 2012.

Jakhar said Punjab annually consumes about 6.88 crore bags of urea and 1.60 crore bags of DAP. Based on current subsidy rates, he estimated that Punjab farmers would receive nearly Rs 32,000 crore in fertiliser subsidies in the current year. “Wheat and paddy farmers have effectively been receiving fertiliser support worth around Rs 42,000 per acre,” he added.

According to a June 8 statement issued by the Department of Agriculture and Farmers Welfare, Government of India, the overall fertiliser stock position remains comfortable.

The department stated that the fertiliser requirement for kharif 2026 has been reassessed at 383.9 LMT nationwide. Against this, the available stock as of June 8 stood at around 197.56 LMT, representing more than 51% of the total requirement. This is higher than the usual stock level of around 33% at this stage.

The statement further noted that farmers had already purchased 86.65 LMT of chemical fertilisers until June 7, accounting for approximately 22.57% of the total projected requirement.

However, farmer organisations continue to allege severe shortages. KMM coordinator Sarwan Singh Pandher warned that protests could intensify if shortages persisted. “Full-fledged paddy sowing season is to start within days, and hence the government needs to be prepared for regulating supplies, or a crisis can occur,” he said.