It’s troublesome to understand the truth that even 78 years after its independence, India, the world’s most populous nation, continues to be closely depending on imported fertilizer to provide crops to feed its 1.46 billion-plus inhabitants. The prospect of a sudden fertiliser worth surge forward of its most vital Rabi (winter) crop season, following suspension of exports by China since mid-October, is sure to affect particularly the manufacturing and worth of wheat together with different crops resembling gram, peas, mustard and barley. India is the world’s second largest producer of wheat, after China. Rabi crops are sown in autumn (October-November) and harvested in spring (March-April). India continues to be the world’s largest fertiliser importer whereas China has been the world’s second greatest exporter of fertiliser after Russia.
China has suspended the export of fertiliser till additional discover. There will likely be no provides from China of speciality fertilisers resembling TMAP (Technical Monoammonium Phosphate) and urea-solution merchandise like AdBlue in addition to typical soil vitamins, together with DAP (Diammonium Phosphate) and urea. India is alleged to be importing virtually 95 p.c of speciality fertilisers from China. The nation consumes yearly some 2,50,000 tonnes of speciality fertilisers, of which almost 65 p.c are used throughout the Rabi season. Various provide sources embrace South Africa, Chile and Croatia.
So poor is India in chemical fertiliser manufacturing that the nation’s import of even essentially the most generally used urea has greater than doubled to 58.62 lakh tonnes throughout the first seven months of the present monetary yr. Throughout the identical interval, final yr, India imported 24.76 lakh tonnes. In response to the Ministry of Chemical compounds and Fertilisers, imports of some 17.5 lakh tonnes are lined up for this month and December. To bridge the scarcity of fertilisers, the federal government is alleged to be making important efforts to spice up imports within the face of China’s export suspension not solely to fulfill the rising home demand but in addition to construct a buffer inventory for the speedy future. Based mostly on the latest export worth information, the main import sources of fertilisers are Russia, Canada, the US, Morocco, Saudi Arabia and the Netherlands.
India imports a number of forms of fertilizers resembling urea, di-ammonium phosphate (DAP), and muriate of potash (MOP), together with numerous NPK advanced fertilizers to take care of its sturdy agricultural manufacturing to feed its individuals. The federal government’s main free foodgrain provide plan gives free foodgrains to roughly 81.35 crore beneficiaries lined below the Nationwide Meals Safety Act (NFSA). The scheme has been prolonged till December 2028.
The meals grains (rice, wheat, or coarse grains) are supplied fully freed from value. It’s absolutely funded by the central authorities, with an estimated monetary outlay of round Rs. 11.80 lakh crore over the interval. This requires a steady development of agricultural manufacturing. Due to the nation’s huge import of fertilisers yr after yr, the agricultural manufacturing has been experiencing sturdy development. The farm manufacturing confirmed a file 5.4 p.c development in FY 2025. For 2025-26, the expansion goal is 3.5 p.c. The big-scale fertiliser imports and authorities’s money assist to farmers by programmes just like the Minimal Help Value (MSP) have helped increase the meals manufacturing.
Nonetheless, it’s hardly a likable state of affairs for India to make its agricultural manufacturing extremely depending on imported fertiliser. The nation should elevate the home manufacturing of chemical fertilisers. Whereas the prevailing fertiliser producers have to be induced to vastly increase their respective capacities, new models ought to be given engaging incentives to come back up quick. Strategically, it could be fallacious to make India’s agricultural manufacturing, which is linked with meals safety, considerably depending on imported fertilisers. That is notably so when the important thing import sources are restricted. These sources embrace Russia, Saudi Arabia, Oman, Morocco, and China, relying on the requirement of particular varieties of fertilizer.
India has numerous fertiliser firms resembling Coromandel Worldwide, Chambal Fertilisers, Nationwide Fertilisers, Rashtriya Chemical compounds and Fertilisers, Gujarat State Fertilisers and Chemical compounds, Fertilisers and Chemical compounds Travancore Restricted, Paradeep Phosphates. As well as, there are two giant cooperatives, particularly Indian Farmers Fertiliser Cooperative Restricted (IFFCO) and Krishak Bharati Cooperative (KRIBHCO). Marked by robust authorities assist, India’s fertilizer producers proceed to be by a difficult however transformative interval. Regardless of dealing with a provide crunch and unstable world costs because the center of the present yr, there are optimistic developments together with long-term provide agreements. Provide points occurred in mid-2025, with declining home manufacturing and imports resulting in sharp inventory depletion of key fertilizers like urea and DAP.
A worldwide provide stranglehold, notably for imported DAP, resulted in important worth spurt in mid-2025, stretching producer margins and growing official subsidy prices. The federal government is working to bridge the hole between home manufacturing and demand by elevated imports, but in addition with a strategic push to cut back dependence on urea and promote balanced nutrient use. The home business acquired important budgetary assist, with a notable improve within the fertilizer subsidy allocation for 2024-25. The cupboard has additionally permitted charges for the Rabi 2025-26 season to make sure affordability. The nation has signed long-term agreements, resembling a take care of Saudi Arabia’s Maaden, to safe a secure provide of DAP for the following 5 years. The home fertiliser business is strategically shifting in direction of balanced nutrient use. The latter could result in a slight dip in general urea manufacturing however a more healthy, extra sustainable agricultural ecosystem in the long term.
A predominantly agricultural nation with a big portion of its inhabitants relying on agriculture for his or her livelihood, and the sector’s important function in its financial system, the nation can’t afford to go away the destiny of its agriculture on imported fertilisers. In truth, agriculture is a strategic sector. Round 42 p.c of India’s workforce is employed in agriculture, and it contributes roughly 17-18 p.c to the nation’s GDP. The nation should finish its overwhelming dependence on fertiliser imports by boosting home manufacturing, judiciously utilizing fertilisers, and innovating by initiatives like indigenous expertise growth. The nation should make robust efforts to revive outdated fertiliser crops and construct new ones, growing options like nano urea, and fostering a shift towards extra balanced, natural farming practices. (IPA Service)
The article Fertiliser Import Price Surge May Hit India’s Rabi Crop Output appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).