India Russia will jointly set up urea factory:India imports about 71% of urea from West Asia

Amidst the urea crisis caused by the Iran war, India and Russia have accelerated the process of setting up a fertilizer plant in a joint venture. This plant is being set up in Samara, Russia, which will be completed in the next two years. Recently, an Indian delegation had visited Russia regarding this. An investment of around ₹20,000 crore is to be made in this joint project between India and Russia. Indian Potash Limited, RCF and NFL are involved in the 20 lakh ton capacity urea project being set up in Russia. Through this project, India wants to reduce its dependence on fertilizer imports. Preparation to reduce dependence on west Asia India is heavily dependent on nitrogen-based fertilizer urea for its agriculture. Currently, India imports about 71% of its required urea from Middle-East countries. 3 Government Companies of India Included in the Project Indian companies Indian Potash Limited (IPL), Rashtriya Chemicals and Fertilizers Limited (RCFL) and National Fertilizers Limited (NFL) will jointly invest ₹10,000 crore. The remaining ₹10,000 crore will be invested by Russia’s chemical company ‘Uralkem Group’. Plant Will Become a Permanent Source of Urea for India Indian Potash MD PS Gahlot said that project consultant PDIL has submitted its report. This plant will become a permanent source of urea for India. Urea production in India is low, consumption is high Urea Being Procured Through Alternative Routes In view of the crisis arising from the US-Iran tensions, the government has approved the import of 25 lakh tons of urea for 2026. This supply is being procured directly from Algeria, Nigeria, Oman, and Russia, bypassing the ‘Strait of Hormuz’ route. Foundation of the project was laid during Putin’s India visit in 2025 The foundation of this project was laid in December 2025, when Russian President Vladimir Putin came to India. An MoU was signed between the two countries in the presence of PM Modi and President Putin. Why is India setting up a factory in Russia? Natural gas is the most important and expensive raw material in making urea. Russia is among those countries in the world which have very large gas reserves. Gas is not available in such quantities in India and we have to import it from outside at expensive prices. This is why making urea there is cheaper. Russia already has advanced technology and large infrastructure for making urea. Why is urea necessary? Urea provides essential nitrogen to the soil, which is necessary for plants. Using the right amount of urea in crops like rice, wheat, and maize increases yield by 20 to 50%. This is why the government does not want any shortage in its supply. ​