Strategies to enhance fertilizer security

UPSC Syllabus: Gs Paper 3- Agriculture

Introduction

India’s fertilizer security is under strain due to heavy dependence on imports, especially from the Gulf for LNG, ammonia, sulphur, urea, and DAP. The system is further stressed by excessive reliance on urea for nitrogen use, rising demand, and limited domestic production growth. This has widened the supply gap and increased vulnerability. A comprehensive strategy focusing on domestic capacity, balanced nutrient use, efficiency improvement, and policy reforms is essential to ensure long-term fertilizer security.

Major Issues with India’s Fertiliser Sector

1. High import dependence: India depends on imports for ~70% of fertilisers and feedstocks, exposing it to global risks.
2. Dependence on imported gas for urea production:Domestic urea production relies on ~85% imported gas, increasing vulnerability.
3. Excessive use of urea: Farmers use more than required urea, leading to imbalance.
4. Distorted pricing system: Urea is sold at < $70/tonne while global price is ~$795/tonne, causing inefficient use and diversion.
5. Diversion and misuse: Low prices create arbitrage opportunities, leading to use in non-agricultural sectors and smuggling.
6. Low Nutrient Use Efficiency (NUE): Granular urea has only 35–40% efficiency, leading to wastage of nutrients.
7. Environmental and health impact: Excess use of nitrogen fertilisers leads to release of nitrous oxide, which is 273 times more harmful than CO₂ and also contaminates groundwater with nitrates, causing diseases like blue baby syndrome, thyroid problems, and diabetes.
8. Policy bias against efficient fertilisers: Liquid urea has ~90% NUE but is not subsidised, showing irrational policy.
9. Inefficient fertiliser composition: DAP contains 18% nitrogen along with 46% phosphorus, worsening nitrogen overuse.
10. Lack of TSP production: No domestic production of TSP with 46% phosphorus, despite need for balanced fertilisation.

Government Initiatives and Progress

1. Nutrient Based Subsidy (NBS): Provides fixed subsidy on P (Phosphorus) and K (Potassium) fertilisers and allows price flexibility for companies.
2. Fertiliser subsidy support: The total fertiliser subsidy was raised to ₹1,91,836 crore, reflecting strong government support to protect farmers from global price rise.
3. Fixed price of urea: Urea is sold at a fixed price of ₹242 per 45 kg bag, with the government covering the cost difference through subsidy.
4. Special subsidy for DAP: A one-time subsidy of ₹3,500 per tonne was provided to keep DAP affordable despite rising global prices.
5. One Nation One Fertilizer (ONOF): The government introduced uniform branding as “Bharat Urea, Bharat DAP, and Bharat NPK” to ensure quality and reduce confusion among farmers.
6. Expansion of domestic production: The government has operationalised six new urea plants, adding 76.2 LMT capacity and increasing domestic production to over 314 LMT.
7. Nano fertiliser initiatives: The government promotes nano urea and nano DAP through field demonstrations, awareness campaigns, and availability at PMKSK centres.
8. Use of technology in application: Initiatives like Viksit Bharat Sankalp Yatra and Namo Drone Didi programme promote drone-based spraying of fertilisers.
9. Neem coated urea programme: The government mandates neem coating of urea to reduce nitrogen loss and improve efficiency, reducing fertiliser requirement by about 10%.
10. PM-PRANAM scheme: This Prime Minister Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth (PM-PRANAM ) scheme incentivises states to reduce chemical fertiliser use and promotes balanced nutrient application.
11. Promotion of biofertilisers: The government supports use of biofertilisers like Rhizobium, Azotobacter, and PSB through research and extension activities.
12. Soil Health Card scheme: Farmers are provided soil health cards that test 12 parameters and guide appropriate fertiliser use every two years.
13. Digital monitoring systems: Systems like Integrated Fertilizer Management System (iFMS) and Mobile Fertilizer Management System (mFMS)track fertiliser supply from production to retail and improve transparency in distribution.
14. International supply agreements: India has signed long-term agreements, including 3.1 million tonnes annual DAP supply from Saudi Arabia, and cooperation with Bhutan, Nepal, and Sri Lanka.

What Should Be Done?

1. Strengthening domestic production systems:

• Revival of flexible production methods: Urea plants should use gas and naphtha mix and continue coal-based utilities to handle input shortages and reduce costs.
• Improving efficiency and capacity: Old plants should be modernised and coal-based units should receive proper reimbursement based on realistic norms to sustain production.

2. Transition towards green fertilizers:

• Adoption of green ammonia: Green ammonia should be promoted to reduce dependence on imported ammonia and LNG, and support cleaner and more sustainable fertilizer production.
• Scaling green urea production: Demonstration plants should be set up, and existing plants should gradually replace grey ammonia to achieve 20–25% production through green ammonia.

3. Diversification of nitrogen sources:

• Promoting balanced fertilizers: Increasing share of NP/NPK fertilizers from current 18% can reduce overdependence on urea.
• Expanding ammonium sulphate use: Ammonium Sulphate (AS) with 20.5% nitrogen and 23% sulphur should be promoted, as its current use is less than 1 MT despite production potential.

4. Reforming subsidy structure:

• Correcting subsidy imbalance: Urea receives 85–90% subsidy without cap, while alternatives get lower support, creating distortion.
• Making alternatives affordable: Removing subsidy cap of ₹9,479 per tonne on AS can reduce price gap, as it is currently four times costlier than urea.

5. Improving nitrogen use efficiency (NUE):

• Promoting efficient fertilizer use: Site-specific integrated nutrient management should be adopted to reduce wastage.
• Use of soil-enhancing inputs: Organic fertilizers and bio-char can improve soil health and increase NUE by about 10 percentage points.

Conclusion

Fertilizer security requires a shift from import dependence to a balanced and efficient system. Strengthening domestic production, promoting green fertilizers, diversifying nutrient sources, and correcting subsidy distortions are key steps. Improving nitrogen use efficiency will further reduce pressure on resources. A coordinated approach can ensure self-reliance, sustainable agriculture, and long-term resilience in the fertilizer sector.

Question for practice:

Examine the key challenges affecting India’s fertilizer security and evaluate the strategies required to achieve self-sufficiency and sustainable nutrient use.

Source: Businessline