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India Secures Long-Term Fertiliser Deals, Expands Capacity to Cut Import Reliance

The government has secured long-term agreements to ensure stable fertiliser supplies and mitigate geopolitical risks. It is encouraging domestic capacity expansion under the Nutrient-Based Subsidy scheme to reduce import dependence. India still relies heavily on imports for key raw materials like rock phosphate and muriate of potash. Concurrently, initiatives promote balanced fertiliser use and soil health through ICAR programs and the National Green Hydrogen Mission.

Key Points: India Diversifies Fertiliser Imports, Expands Domestic Capacity

  • Long-term import deals with resource nations
  • Domestic capacity expansion under NBS scheme
  • High import reliance on key raw materials
  • Push for balanced soil nutrition & green ammonia
2 min read

Govt assures steady fertiliser supplies through import diversification, capacity expansion

Government secures long-term supply deals, boosts domestic production under NBS scheme, and promotes balanced fertiliser use to ensure stable availability.

"Efficient fertiliser use is encouraged through practices such as split application of nitrogen, proper placement of fertilizers... - Ministry Statement"

New Delhi, March 27

The Department of Fertilisers has secured long‑term agreements and memoranda of understanding with resource‑rich nations to ensure a stable supply for domestic production of fertilisers and thus mitigate geopolitical risks, an official statement said on Friday.

To boost domestic substitution, the government is encouraging capacity expansion under the Nutrient‑Based Subsidy scheme, Union Minister JP Nadda said in Lok Sabha.

The government reiterated its commitment to ensuring fertiliser availability while tackling import dependence and soil nutrient imbalance, the statement from Ministry of Chemicals and Fertilizers said.

Estimated import shares for fertiliser-raw material in CY2024‑25 include rock phosphate at 86 per cent, sulphur at 52 per cent, natural gas for the urea sector at 78 per cent, ammonia for complex fertilisers at 75 per cent, phosphoric acid at 52 per cent and muriate of potash at 100 per cent.

India continues to rely significantly on imports for key fertilizer raw materials and intermediates due to limited domestic reserves.

Fertiliser companies are currently establishing new DAP/NPK plants with a combined annual capacity of 59.65 LMT, alongside phosphoric and sulphuric acid plants with a capacity of 44.21 LMT.

Further, under the National Green Hydrogen Mission, a provision has been made for the procurement of 7.24 LMT of Green Ammonia for the fertiliser sector, the minister said.

The Indian Council of Agricultural Research (ICAR) recommends soil test-based balanced fertilization and is complemented by the balanced application of NPK fertilisers rather than excessive reliance on nitrogen alone.

"Efficient fertiliser use is encouraged through practices such as split application of nitrogen, proper placement of fertilizers, and the use of slow-release fertilisers, neem-coated urea, and nitrification inhibitors to minimize nutrient losses," the statement said.

ICAR also engaged in capacity building through farmer training, demonstrations, and awareness programmes to help reduce excessive urea consumption, ensure balanced nutrient application, and improve soil health.

- IANS

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Reader Comments

S
Sarah B
The import dependency numbers are staggering - 100% for potash, 86% for rock phosphate. While diversification is good, we need a stronger push for domestic exploration and alternative nutrient sources. Self-reliance is key for food security.
P
Priyanka N
Finally, a focus on soil health! My father used to just dump urea on our fields. The training programs for balanced fertilization and neem-coated urea are crucial. We must save our soil for future generations.
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Aman W
Capacity expansion of nearly 60 LMT is a massive investment. Hope this translates to stable prices and timely availability for small farmers before the Kharif season. The proof will be in the implementation.
K
Karthik V
Good to see a multi-pronged strategy: securing imports, building domestic plants, and promoting efficient use. The green hydrogen mission link is smart. But we must ensure subsidies reach the actual farmers, not middlemen.
N
Nisha Z
As someone from a farming family, I appreciate the intent. But announcements in Delhi are one thing. We need these new plants and training programs to actually reach villages in Bihar, UP, and Punjab. Ground reality is often different.

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