Bags of urea fertilizer stacked at a warehouse yard

What Is the Cost of Urea Fertilizer? Price per Kg, Bag and Ton (2026)

If you have priced urea recently and got three different numbers from three different places, that is normal: urea pricing depends on who is buying. A trader buying a shipload pays a completely different price than a farmer at a local dealer. Both prices are correct; they answer different questions.

Urea prices as of October 2026:

  • Global wholesale: about $408 per tonne (World Bank benchmark, FOB Middle East, September 2026)
  • India: ₹242 per 45 kg bag of neem-coated urea, fixed by the government, which works out at about ₹5.38 per kg
  • Unsubsidised bag equivalent: about $20.40 for 50 kg or $18.30 for 45 kg, before freight, bagging and dealer margin
  • United States retail: about $672 per ton in the first week of October 2026 (DTN survey)
Bags of urea fertilizer stacked at a warehouse yard
Retail bags and bulk shipments are priced very differently.

Urea price per kg, bag and ton at a glance

MeasurePriceBasis
Per tonne (wholesale)$407.50World Bank, granular urea FOB Middle East, September 2026
Per kg (wholesale equivalent)about $0.41Wholesale price divided by 1,000
45 kg bag (wholesale equivalent)about $18.30Before freight, bagging and margin
50 kg bag (wholesale equivalent)about $20.40Before freight, bagging and margin
India, 45 kg bag (MRP)₹242Excluding neem coating charges and taxes
India, per kgabout ₹5.38₹242 divided by 45 kg
India, 50 kg equivalentabout ₹26950 kg bags are no longer sold in India
United States, retailabout $672 per tonDTN retail survey, first week of October 2026
Wholesale figures from the World Bank Pink Sheet (October 2026). Local prices vary with freight, taxes and subsidies.

Wholesale price vs. retail price: why they never match

The wholesale price is the international market price paid by traders, importers and large buyers for shiploads, quoted per metric tonne. This is the number published by the World Bank, price agencies and futures markets.

The retail price is what a farmer pays a local dealer for a bag. It adds shipping, bagging, distribution and the dealer’s margin and, in many countries, subtracts a government subsidy. In India, the retail price of urea is fixed by the government and does not move with the global market; the subsidy absorbs the difference.

When you compare prices, always check which one you are looking at.

How urea prices moved in 2026

PeriodUrea, $ per tonneDAP, $ per tonne
2024 average338.3563.7
2025 average422.7685.2
October to December 2025398.7696.6
January to March 2026537.7634.7
April to June 2026693.5759.5
July to September 2026399.2791.8
September 2026407.5800.6
Source: World Bank Pink Sheet, October 2026. Urea: granular, FOB Middle East. DAP: spot, FOB US Gulf.

Early 2026 caught many buyers off guard. Shipping disruptions around the Strait of Hormuz, a key route for Gulf urea exports, and a jump in natural gas prices, the main cost in making urea, pushed the benchmark from about $399 per tonne at the end of 2025 to an average of $694 in the second quarter. Prices then fell back to around $400 in the third quarter.

Gas is still expensive: the World Bank’s European gas price averaged $25.42 per million Btu in September 2026, against $11.96 for 2025 as a whole. That keeps European production costs high and is one reason urea remains one of the most volatile farm inputs. The number you saw six months ago may not be the number today.

Urea prices by region

United States

US Gulf urea futures traded at around $435 per short ton in mid-October 2026, while the average retail price paid by farmers was about $672 per ton in the first week of October, according to DTN. The gap is freight, storage, distribution and dealer margin, so check local dealers rather than assuming the wholesale price applies to you.

India

The government sets the maximum retail price at ₹242 per 45 kg bag of neem-coated urea, excluding neem coating charges and taxes, and confirmed in March 2026 that it has no plan to raise it. The Department of Fertilizers pays manufacturers and importers the difference between that price and the real cost as subsidy, which shields Indian farmers from global price swings.

Europe and the Middle East

European buyers feel global moves more directly because natural gas prices, which drive production costs, stayed high through 2026. Middle East FOB prices are the main export benchmark and are the figure used in the tables above.

What is urea fertilizer?

Urea is a nitrogen fertilizer containing about 46% nitrogen by weight, the highest of any solid nitrogen fertilizer. That is why it is usually the cheapest way to supply nitrogen per unit of nutrient, even when the price of a bag looks higher than alternatives. It comes as white prills or granules and is used on almost every major crop: wheat, rice, maize, sugarcane and vegetables. See our guide to urea N46 specifications and how it is made in the urea manufacturing process.

White granular urea fertilizer spilling from a scoop onto soil
Granular urea contains about 46% nitrogen.

Urea or DAP: which costs more?

DAP (diammonium phosphate) supplies both nitrogen and phosphorus and costs more than urea. In September 2026, DAP averaged $800.60 per tonne against $407.50 for urea, about twice the price. If your soil test shows you only need nitrogen, urea is the more economical choice. If you also need phosphorus or potassium, compare the cost per unit of nutrient: a blended NPK fertilizer can work out cheaper overall. Our guide to the top 3 fertilizers explains the differences.

Why 45 kg bags instead of 50 kg?

India moved from 50 kg to 45 kg urea bags in 2018, and the government has also said smaller bags help curb overuse of urea. The price per kilogram stays about the same; only the bag is smaller. That is why searches for a “50 kg urea price in India” no longer match a product on sale.

How much urea does an acre need?

It depends on the crop and the soil, but as a rough starting point:

  • Most field crops: 50 to 80 kg per acre
  • Paddy (rice): 75 to 100 kg per acre

That puts most farmers at one to two bags per acre. A soil test gives a more accurate figure and saves money, since over-applying urea wastes nitrogen and can harm the soil over time.

When should you apply urea?

Most farmers split urea into two or three applications:

  1. Basal dose: part of the urea at sowing or planting
  2. Top dressing: the rest around 20 to 25 days after sowing, with a second round at 45 to 50 days for crops such as paddy and wheat

Avoid applying urea just before heavy rain or irrigation, which washes it away before the crop can use it.

Mixing urea for foliar spraying

  • Dissolve 1 kg of urea in 100 litres of water
  • Stir until it is fully dissolved
  • Spray early in the morning or in the evening; spraying in strong midday sun can burn leaves

What makes one batch of urea better than another?

Standard urea contains about 46% nitrogen, so quality is the real difference. Look for even granule size, no dust or caking, and packaging that keeps moisture out. Caked or dusty urea is harder to spread evenly. Industrial users have stricter specifications: see technical grade urea prices.

Buying urea in bulk

Agromer trades urea with major refineries on spot and contract terms for importers, distributors and industrial buyers. We supply bulk shipments only and do not sell retail bags to farmers; for a few bags, please contact your local dealer or cooperative.

For a bulk offer, send the grade, quantity, packaging and destination port with an end-buyer Letter of Intent. See our urea fertilizer supply page for grades and procedure.

Before you send: Agromer trades with businesses only, in bulk shipments. We do not supply retail or small farm quantities. Payment is by irrevocable documentary letter of credit (DLC) or SBLC. For urea, coal and petroleum products, an end-buyer Letter of Intent is needed before an offer is issued.
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Frequently asked questions

What is the global wholesale price of urea?

The World Bank benchmark (granular urea, FOB Middle East) averaged $407.50 per tonne in September 2026 and $399 per tonne over July to September 2026.

What is the MRP of urea in India?

The maximum retail price of a 45 kg bag of neem-coated urea is ₹242, excluding neem coating charges and taxes. The government confirmed in March 2026 that it has no plan to raise it.

What is the price of urea per kg?

At the September 2026 wholesale benchmark, urea costs about $0.41 per kg before freight, bagging and dealer margin. In India the subsidised price works out at about ₹5.38 per kg.

What is the price of a 50 kg bag of urea?

At the global wholesale price, 50 kg of urea is worth about $20.40 before freight and margins. India no longer sells 50 kg bags; at the 45 kg MRP, 50 kg would be about ₹269.

Why did urea prices rise so sharply in 2026?

Shipping disruptions around the Strait of Hormuz and higher natural gas prices pushed the World Bank benchmark from $399 per tonne in late 2025 to an average of $694 in April to June 2026. Prices fell back to about $400 in the third quarter.

Which is more expensive, urea or DAP?

DAP. In September 2026 DAP averaged $800.60 per tonne against $407.50 for urea, about twice the price per tonne.

How much urea is needed per acre?

It depends on the crop and the soil. As a general guide, most field crops use 50 to 80 kg per acre and paddy 75 to 100 kg, about one to two bags. A soil test gives a more accurate figure.

Can I buy urea in bulk from Agromer?

Yes, for businesses buying in bulk. Agromer trades urea with major refineries on spot and contract terms. Send an end-buyer Letter of Intent with grade, quantity and destination through the quote request form. Agromer does not supply retail bags.

Sources

Compare markets: see urea fertilizer prices by country for 2024 import and export values by market, and urea production and export data for supply trends.