Policy reforms, private investment crucial to stem India's dependence on fertiliser imports: FAI DG
New Delhi, July 9
India needs policy reforms and higher private investment in the fertiliser sector to reduce dependence on imported raw materials and intermediates, Fertiliser Association of India Director General Suresh Kumar Chaudhari told.
In an exclusive interview with ANI on Thursday, Chaudhari expressed concern over the lack of private investment in the sector over the past decade.
"In the last 10 years, not big investment... came from the private side in the fertiliser sector. That is the matter of worry," he said.
He stressed the need for investor-friendly policies to encourage large-scale investments and support the government's self-reliance agenda.
"We should have very positive and friendly policies so that investors are able to invest largely in the fertiliser sector... Whatever raw material we have, we can use that raw material to manufacture good quality fertiliser," he said.
Responding to a question on reducing import dependence, Chaudhari said India requires short-, medium- and long-term policy interventions.
"On a short-term basis, we need to bring policy reforms which will encourage domestic production and domestic availability," he said.
He noted that even though India has domestic manufacturing capacity for nitrogen and phosphorus fertilisers, it still relies on imported raw materials and intermediates.
"For nitrogen we are dependent on raw materials, intermediates and gas from other parts of the world," he said.
Chaudhari said policies should support domestic production wherever feasible and ensure that fertilisers manufactured in India remain globally competitive and do not adversely affect soil health.
"When I say quality, certainly we have to be competitive with the global products... At the same time, the products should not impact the soil health adversely," he said.
He also highlighted the growing focus on sustainable farming practices and bio-fertilisers.
"The Government of India has brought Mission Natural Farming. Investment in conservation agriculture and regenerative agriculture is increasing day by day. Bio-fertiliser is yet another important candidate which can be embraced," he said.
Chaudhari proposed expanding bio-fertiliser production to the panchayat level, saying it could significantly reduce dependence on conventional chemical fertilisers.
"If we are able to target panchayat-level production of bio-fertilisers, it will bring a revolution in the fertiliser sector," he said, adding that replacing even 20-35 per cent of conventional fertilisers with bio-fertilisers could improve soil health and benefit farmers.
However, he said complete self-reliance in fertilisers may not be achievable because India will continue to depend on imported raw materials and gases that are not available domestically.
"Making India's fertiliser sector completely Atmanirbhar may not be possible because our dependence on raw materials, intermediates, acids and gases will remain," he said.
Looking ahead, Chaudhari identified green ammonia and green hydrogen as promising long-term solutions for the fertiliser sector, though their wider adoption would depend on technological and economic viability and production at scale.
— ANI
Reader Comments
I appreciate the DG's honesty about domestic manufacturing capabilities. But here's my concern - whenever we talk about policy reforms, big companies get all the benefits while small farmers like my uncle in Punjab struggle with rising fertilizer costs. If bio-fertilizers can really work at the village level, that would be a game changer. However, the government needs to ensure quality control - we've seen too many fake products in the market.
Great analysis! As someone working in agri-research, I can tell you that bio-fertilizers are not just a fad - they work! But the infrastructure needs massive scaling. Panchayat-level production is feasible but only if we train local women's self-help groups properly. Also, green hydrogen in fertilizers? That's 10-15 years away minimum. Let's fix the short-term problems first before dreaming about long-term solutions.
Interesting perspective from an Indian official. In the US, we faced similar challenges with fertilizer dependence. The solution was a mix of policy incentives for domestic production AND investment in precision agriculture to reduce overall usage. India has an advantage - huge agricultural workforce that can adopt sustainable practices faster. But the policy paralysis needs to end. Clear signals from government attract private capital.
DG sahab has raised valid points but I have one criticism: why is the government still subsidizing chemical fertilizers so heavily? That subsidy prevents private investment because companies know government will always bail them out. If we want true self-reliance, reduce subsidies gradually and redirect that money to bio-fertilizer research and farmer training. Nepal and Bangladesh are already doing this!
S We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.