War, fuel costs push India to rethink fertilizer use, cut import reliance

New Delhi: The ongoing conflict in West Asia and rising prices of fuel and fertilizers are pushing India to improve fertilizer use efficiency and curb demand, even as it works to become self-reliant in production. India currently produces 80% of its urea requirement domestically and imports the rest.

Efforts are underway to boost local capacity to achieve full self-reliance. However, the urea industry remains heavily dependent on imported fuel for manufacturing. While green ammonia made through solar-powered electrolysis of water is an alternative, it is not sustainable in water-stressed regions.

The situation is more critical for phosphatic fertilizers. India lacks significant mineral rock phosphate reserves and imports almost all of its requirement. Together, nitrogen-based fertilizers like urea and phosphorus-based fertilizers underpin India’s food security.

The government has increased subsidies to shield farmers from price spikes. Yet, over two-thirds of the ₹2 lakh crore spent annually on fertilizer subsidies does not translate into food output and is lost to pollution, experts note.