Material Insights · Understanding the Material World

Urea: Regulation

A quarter of India's urea now comes by sea

A quarter of India's urea now comes by sea What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.

Hazards

ClassificationUN numberKey risks
Not classified as hazardous under GHS in most jurisdictionsnot regulatedLow acute hazard. Main risks are environmental: ammonia volatilisation, nitrate leaching and N2O from fields.

Main rules

WhereRuleEffect
EUFertilising Products Regulation (EU) 2019/1009; CBAM covers urea (CN 3102 10) from 2026; Germany and others limit unprotected urea use (indicative)carbon cost on imports; push to inhibitor-treated urea
EUTariffs on Russian and Belarusian nitrogen fertilisers from July 2025, rising to 2028 (indicative)diverts Russian urea to other markets
ChinaExport inspection and quota system since October 2021controls export volumes

India

RuleEffect
Fertiliser (Control) Order 1985: at least 46% N, biuret at most 1.5%, moisture at most 1.0%product standard
Essential Commodities Act; urea under statutory price control (Rs 242 per 45 kg bag)fixed farm price
New Urea Policy 2015 with energy norms; mandatory neem coating (2015)plant efficiency targets; stops diversion to industry
Canalised imports through state trading enterprisesgovernment controls import volumes and timing

Trade measures

  • China export quotas
  • EU CBAM from 2026 and tariffs on Russian fertilisers
  • India import canalisation

Supply risk

Chokepoint risk at Hormuz; Chinese export policy; sanctions on Russia. India's import dependence was about 26% of sales in FY2026 (10.38 of 39.64 Mt). Fertilisers are treated as strategic in India but urea is not on mineral critical lists.