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Balanced Fertilizer Push for India
July 06, 2026
|Outlook
As India faces fertilizer import shocks; Deepak Shah, Chairman of CCFI calls for shift to high NUE solutions for food security and growth.
India, the largest fertilizer consumer, faces structural challenges from import dependence, price volatility and inefficient nutrient use.
Annual fertilizer subsidy expenditure has now crossed Rs 2.5 lakh crore, placing significant strain on public finances. At the same time, geopolitical conflicts such as the Russia-Ukraine war and tensions in West Asia have repeatedly disrupted supply routes, especially for ammonia and potash, which are critical inputs for fertilizer production.
India imports over 25% of its urea, most potash and major phosphatic inputs, along with ammonia used for urea production. Heavy reliance on global markets leaves supply exposed to external shocks. West Asia instability and Hormuz Strait risks deepen vulnerability further.
Global fertilizer prices have surged sharply since 2022 due to disruptions, raising India’s import bill to multi-lakh crore levels annually. While domestic urea production meets most demand, seasonal gaps still emerge during peak sowing periods, impacting timely fertilizer availability for farmers.
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