Urea imports increased by 11 per cent to 81.25 lakh tonnes (LT) in the first ten months of this fiscal.
India had imported 73.02 LT of urea in the corresponding period a year ago, according to official data.
The rise in imports was due to lower prices of the fertiliser in the international market, a source said.
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Besides, India also has an offtake agreement with Oman-based fertiliser firm OMIFCO, a joint venture between domestic co-operatives such as IFFCO, Kribhco and Oman Oil company SAOC.
Urea is a controlled fertiliser and is sold at a fixed selling price of Rs 5,360 per tonne. The difference between cost of production and selling price is paid as a subsidy to the manufacturers.
The country's annual urea demand is 30 million tonnes (MT), while the production is stagnant at 22 MT.
The government has ensured that the urea which is being sold in the country whether indigenously produced or imported will be completely neem coated, a move aimed at checking the diversion of subsidised urea for industrial purposes.
The decision for mandatory neem coating of urea was taken on May 25 this year. In a record time of 166 days, 100 per cent urea is now being sold neem coated, Fertiliser Minister Ananth Kumar had said.
The production is expected to rise to 24 MT in the current financial year after the new energy norms framed by the government for fertiliser plants, he said.