India is preparing to deepen its long-term fertiliser partnership with Russia as state-backed companies move closer to signing a joint venture deal with Uralchem, the country’s largest producer of potash and ammonium nitrate. The agreement is expected to be finalised during President Vladimir Putin’s visit to New Delhi on Friday, according to three sources familiar with the matter.
The project aims to enhance India’s fertiliser security by establishing a urea production plant in Russia, operated under a joint venture model. Under the proposed structure, India Potash Ltd (IPL) and Rashtriya Chemicals and Fertilisers Ltd (RCF) would each hold a 22.5% stake, while National Fertilizers Ltd (NFL) would take 5%. Uralchem would maintain the remaining share and lead development of the facility.
India, the world’s third-largest economy, depends heavily on imported fertilisers to meet the needs of its vast agricultural sector, which supports around 40% of the workforce and contributes roughly 15% to GDP. Strengthening supply chains has become a priority for New Delhi amid global market volatility and geopolitical tensions.
Russia has become an increasingly important fertiliser supplier for India. Imports rose more than threefold to $1.7 billion in 2024 compared with 2021, and peaked at $2.7 billion in 2022. Total fertiliser imports also climbed by 82% year-on-year to reach $10.2 billion between April and October 2025.
The new Russian plant will run on natural gas, following a model similar to India’s long-established overseas fertiliser venture in Oman, one source noted. The move comes as India seeks to diversify supply channels and stabilise costs in response to global uncertainty.
India imported 5.6 million tonnes of urea in the 2024/25 fiscal year—down from a peak of 9.8 million tonnes in 2020/21—as domestic production improved and sourcing strategies shifted. However, imports have risen again in the current fiscal year, with 5.9 million tonnes of agricultural-grade urea brought in between April and October 2025, up sharply from 2.5 million tonnes a year earlier.
The expected deal with Uralchem is set to further solidify New Delhi’s ties with Moscow at a time when Russian trade remains constrained by Western sanctions. India also continues to import urea from Oman, Qatar, Saudi Arabia and the UAE as it works to ensure stable supplies for its farm-dependent economy.