Improving Fertilizer Use Efficiency in India – Challenges, Subsidy Issues & Sustainable Solutions

Geopolitical Pressures and Fertilizer Dependence

India’s fertilizer security is deeply tied to global geopolitics. The ongoing Iran–USA conflict has disrupted natural gas imports from West Asia, a critical input for urea production.

• Urea: 80% produced domestically, 20% imported, but heavily reliant on imported natural gas.

• Phosphatic Fertilisers (DAP): India depends on imports due to limited rock phosphate reserves, with Morocco and Jordan as key suppliers.

Any disruption in supply chains directly impacts agricultural productivity and food security.

The Fertilizer Subsidy Problem

India spends heavily on fertilizer subsidies, yet efficiency remains low. Much of the fertilizer applied is lost through:

• Leaching into groundwater.

• Runoff into rivers and lakes.

• Volatilisation into the atmosphere.

This not only wastes resources but also damages ecosystems.

The Fertilizer Trap

Excessive chemical fertilizer use reduces soil organic matter, which is vital for nutrient absorption.

• Poor soil health forces farmers to apply more fertilizer.

• This worsens soil degradation, creating a cycle of higher costs and lower productivity.

Policy Shortcomings

• Nutrient-Based Subsidy (NBS): Urea was excluded, keeping it artificially cheap and encouraging overuse.

• Neem-Coated Urea: Slowed nitrogen release but failed to prevent major losses.

• Phosphatic Fertiliser Runoff: Causes eutrophication and algal blooms, harming aquatic ecosystems.

• MSP Bias: Procurement favors rice, wheat, and sugarcane, discouraging pulses and crop diversification, increasing nitrogen dependence.

Importance of Pulses

Pulses naturally enrich soil through Rhizobium bacteria, reducing nitrogen fertilizer needs. Crop rotation with pulses improves soil fertility, lowers input costs, and enhances nutrition.

Water Stress and Rice Cultivation

India produces surplus rice, much of which is exported. But rice is highly water-intensive, meaning India is effectively exporting groundwater. Using rice for ethanol production further strains food and water security.

Government Initiatives

• Dalhan Atmanirbharta Mission: Promotes pulse cultivation with MSP support. Progress remains limited, requiring stronger implementation.

Way Forward

• Restore Soil Health – Encourage compost, manure, and biogas residues.

• Focus on Crop Varieties – Invest in high-yielding, climate-resilient crops.

• Policy Coordination – Revive the National Nitrogen Steering Committee for inter-ministerial action.

• Reduce Chemical Use at Basal Stage – Promote organic manure during sowing.

• Promote Pulses & Rotation – Ensure assured procurement to encourage diversification.

• Strengthen R&D – Develop crops requiring less water and fertilizer.

Conclusion

India’s fertilizer policy must evolve from supply expansion to efficiency and sustainability. Excessive chemical use has trapped farmers in declining soil health and rising costs. A balanced approach—combining organic inputs, crop diversification, pulse promotion, and coordinated governance—can break this cycle. By focusing on soil health and sustainable fertilizer use, India can secure both agricultural productivity and long-term food security.