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Scarcity amid surplus: The fertiliser paradox

Business Standard

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September 15, 2025

The urea 'shortage' reveals deeper problems: Supply mismanagement, black markets, and panic-driven demand surge. Sanjeeb Mukherjee gives insights

The Biju Janata Dal (BJD), the principal Opposition party in Odisha, plans a major protest on Monday in front of the Raj Bhawan to highlight the fertiliser crisis in the state.

Last week in neighbouring Andhra Pradesh, YSR Congress Party (YSRCP) chief Y S Jagan Mohan Reddy criticised Chief Minister N Chandrababu Naidu over a urea "shortage". He alleged that an artificial scarcity of fertiliser has resulted in a scam worth 200-250 crore. Speaking at a press conference in the state capital, Reddy claimed that urea was being diverted for non-farming purposes with the help of senior state officials. The ruling dispensation strongly denied the accusation.

Several other states—including Punjab, Uttar Pradesh, Chhattisgarh, Bihar, and Madhya Pradesh—have previously flagged shortages of fertilisers, especially urea.

In July, Union Agriculture Minister Shivraj Singh Chouhan wrote to states urging them to monitor and take swift action against black marketing, overpricing and the diversion of subsidised fertilisers.

As the kharif sowing season comes to an end across India, the acute shortage of urea has become a key concern for farmers awaiting the new harvest. Urea is used extensively during kharif to meet nitrogen requirements in paddy and maize cultivation. Diammonium phosphate (DAP) is more in demand during the rabi season.

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