Importing Fertilizers: A Problem for India

• The ongoing crisis in Ukraine and Gaza has led to increased prices of petroleum-based chemical fertilizers.
• India needs to increase its own fertilizer production capacity due to the shortage of essential components like Diammonium Phosphorus (DAP) and NPK.
• The Standing Committee of Parliament on Chemicals and Fertilizers expressed concern that the production capacity of fertilizers does not match its demand/requirement, leading to a gap between demand and supply being met through imports.
• In 2021-22, India’s yearly consumption of all major chemical fertilizers was approximately 579.67 lakh metric tonnes (LMT), with a shortfall of 143.72 LMT relative to demand.
• The most consumed fertilizer in India was Urea, with production and use increasing from 2019-20 to 2021-22.
• The Centre allocated ₹ 1.79 lakh crore as fertilizer subsidy under the Budget estimates for 2023-24.
• The situation in Ukraine and Gaza is causing instability in fertilizer markets, with the crisis impacting oil prices and by-products such as fertilizers.
• Experts suggest enhancing fertilizer production capacity, shifting farming systems, using nano urea, shifting to natural farming, and enhancing the capacity of fertilizer factories.
• The Standing Committee of Parliament has pointed out the need for policy initiatives to facilitate investments in the public, cooperatives, and private sectors engaged in the manufacturing and marketing of fertilizers.