Material Insights · Understanding the Material World

Urea

The world's most used nitrogen fertiliser, 46% N, made from ammonia and CO2; India is its biggest subsidised buyer and swing importer.

Commodity chemicals · Nitrogen & phosphate chemicals · No. 19

  • Single chemical
  • Feedstock: Oil, gas or coal
  • about 201 Mt a year (2024)
  • 1.0 t CO₂e per t
  • HS 310210
Commodity chemicals · Nitrogen & phosphate chemicals · Foundation · Matter

Indian farmers pay a fixed Rs 242 a bag for urea, so when India runs short, world prices jump.

Chart: Illustration: Urea

Where it comes from

Chart: Map of where it comes from

Urea is ammonia reacted with the CO2 from its own ammonia plant at 140-200 bar, then prilled or granulated; about 201 Mt was made in 2024.

Three things to know
  1. Urea is 46% nitrogen and ships as dry bulk, which makes it the cheapest nitrogen to move and spread.
  2. India made 29.32 Mt of urea in FY2026 but sold 39.64 Mt, so imports nearly doubled from 5.65 Mt to 10.38 Mt.
  3. Each tonne carries 0.733 t of CO2 that escapes once spread, so its field footprint exceeds its factory one.
The journey
  1. 1 Ammonia plant0.567 t ammonia per tonne urea
  2. 2 CO2 capture0.733 t CO2 from the same plant
  3. 3 SynthesisReacted at 140-200 bar into urea
  4. 4 FinishingPrilled or granulated; neem coated in India
  5. 5 Bulk shippingAbout 40% passes through Hormuz
  6. 6 FarmSpread on fields at subsidised prices
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