Fertilizer Policy Reforms Critical for India's Food Security Amid Global Instability
Contents4
Indian Express - Opinion · 14 Apr 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance
India's heavy dependence on imported fertilizers and feedstocks (70%) poses a significant risk to food security, especially with global price surges due to geopolitical conflicts, necessitating urgent policy reforms in subsidy allocation and nutrient use efficiency.
Key points
Import Dependence: India imports 70% of its chemical fertilizers and feedstocks, with urea imports alone accounting for 25% of total consumption (10MT out of 40MT). Domestic production also relies on 85% imported gas, making the sector vulnerable to global price volatility.
Price Surge: Global urea prices rose by 65% ($482 to $795/tonne) and LNG by 63% ($12 to $19.5/MMBtu) during the 40-day conflict period, straining India's subsidy burden and agricultural input costs.
Nutrient Imbalance: Overuse of urea (N) relative to phosphatic (P) and potassic (K) fertilizers, exacerbated by subsidies, leads to soil degradation and environmental harm, with Nutrient Use Efficiency (NUE) for granular urea at just 35-40%.
Policy Inefficiencies: Subsidized urea ($70/tonne domestically vs. $795/tonne globally) encourages diversion and overuse, while liquid urea (90% NUE) remains unsubsidized, highlighting irrational pricing policies.
Essential Commodities Act: The article suggests rationing urea supplies to states by 10-15% under this Act, with allocation based on land records, crop patterns, and scientific recommendations to curb misuse.
[GS3-Environment] Environmental Impact: Nitrous oxide emissions from urea overuse are 273 times more potent than CO2, while groundwater nitrate contamination causes health issues like blue baby syndrome and thyroid disorders.
[GS2-Governance] Subsidy Reforms: Merging PM-KISAN and fertilizer subsidies into direct cash transfers per acre could rationalize usage and include tenant farmers, currently excluded from PM-KISAN, but requires robust cultivator identification systems.
Production Diversification: Incentivizing domestic Triple Super Phosphate (TSP) production (46% P) over Single Super Phosphate (SSP) (16% P) could correct the N:P imbalance, reducing reliance on Gulf imports.
Way Forward: India should (1) implement urea rationing under the Essential Commodities Act, (2) shift subsidies to high-NUE fertilizers like liquid urea, (3) integrate PM-KISAN and fertilizer subsidies into direct cash transfers, and (4) diversify domestic P and K production through strategic partnerships.
Key terms
- Nutrient Use Efficiency (NUE)
- The proportion of applied nutrients absorbed by crops, critical for sustainable agriculture. India's NUE for urea is just 35-40%, compared to 90% for liquid urea via drip irrigation, highlighting inefficiencies in current subsidy policies and environmental costs.
- Essential Commodities Act (1955)
- A law empowering the government to regulate production, supply, and distribution of essential commodities to ensure affordability and availability. Its application to fertilizer rationing could curb diversion and overuse, aligning with food security goals.
- PM-KISAN Scheme
- A central sector scheme providing income support of ₹6,000/year to landholding farmer families. Its exclusion of tenant farmers limits effectiveness, and integration with fertilizer subsidies could enhance targeting and reduce leakages.
- Strait of Hormuz
- A critical global oil transit chokepoint between Oman and Iran, through which 21% of India's crude imports pass. Geopolitical tensions here directly impact fertilizer feedstock (LNG) prices and India's energy security.
Practice question
Discuss the challenges posed by India's current fertilizer subsidy regime and suggest reforms to ensure sustainable agricultural practices and food security. (250 words, 15 marks)
GS3 15 marks 250 words Mains
Key terms to include: Nutrient Use Efficiency (NUE) PM-KISAN Scheme Essential Commodities Act Triple Super Phosphate (TSP) Direct Benefit Transfer (DBT) Nitrous oxide emissions
Answer framework
Introduction
Briefly outline India's heavy dependence on imported fertilizers and the issues arising from the current subsidy regime, such as nutrient imbalance and environmental degradation.
Challenges in Current Fertilizer Subsidy Regime
High import dependence (70% of fertilizers and feedstocks) leading to vulnerability to global price volatility.
Overuse of urea due to irrational pricing policies, causing soil degradation and low Nutrient Use Efficiency (NUE).
Environmental impact, including high nitrous oxide emissions and groundwater contamination.
Policy Inefficiencies
Subsidized urea encourages diversion and overuse, while high-NUE alternatives like liquid urea remain unsubsidized.
Exclusion of tenant farmers from PM-KISAN scheme limits the effectiveness of direct benefit transfers.
Suggested Reforms
Implement urea rationing under the Essential Commodities Act based on land records and crop patterns.
Shift subsidies to high-NUE fertilizers like liquid urea to improve efficiency and reduce environmental harm.
Merge PM-KISAN and fertilizer subsidies into direct cash transfers per acre to include tenant farmers and rationalize usage.
Diversify domestic production of phosphatic and potassic fertilizers to reduce reliance on imports.
Conclusion
Emphasize the need for a balanced approach that ensures food security while promoting sustainable agricultural practices through rational subsidy allocation and improved nutrient management.
Fact check
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