Page 175 - CW E-Magazine (1-4-2025)

Special Report Special Report

The growth of the fertiliser market in India and causes a heavy burden on the state (2025) has proposed a new urea plant raw material natural gas is cheaply
exchequer. The annual fertiliser sub-
in the premises of BVFCL) in Namrup available was a successful option
Fertilisers: Key to food security tainable agriculture DR. M.P. SUKUMARAN NAIR sidy expenditure, which was hovering (Assam) with a capacity of 1.27-mtpa. considered by the government to ensure
ndia, the world’s most populous and reduce reliance Director, Centre for Green Techno- around $15-bn to $20-bn in the past few the availability of urea.
country having a population of on chemical fertili- years, peaked to $29-bn in 2022-23. Revamp existing plants for higher
I1.45-billion people depends heavily sers. Biological or logy & Management, Cochin The union budget for 2025-26 carries output There were also proposals for ac-
Formerly, Secretary to Chief Minister,
on mineral fertilisers to sustain its biofertilisers contain Kerala & Chairman, Public Sector a provision for $19.4-bn. Most fertiliser manufacturers have quisition of fertiliser assets (produc-
agricultural output and feed its people. microorganisms that Restructuring & Audit Board already adopted and implemented pro- tion units, mines for raw materials,
Foodgrain production in 2024 was enhance nutrient up- Govt. of Kerala Government initiatives include ade- jects and schemes intended for the bet- etc.), especially potash and phosphate
332-mt (million metric tonnes) of which take and availability E-mail: nairmps50@gmail.com quate provision for subsidies on ferti- terment of capacity utilisation, opera- mines in Russia, Canada, and Belarus.
55-60%, as per several studies, is in the soil. They are eco-friendly and lisers to make them affordable for tional reliability, and energy effi ciency, As the Department of Fertilisers could
attributed directly to chemical fertilisers. naturally improve soil fertility. keep prices of fertilisers affordable farmers; efforts for promoting balanced so as to achieve the best onstream fac- not formulate viable incentive schemes,
Looking at the challenges in the pre- to the farmers; fertilisation and sustainable agricul- tor. Retrofi t and revamp options, when- such acquisition proposals have not
sent global context, the prospects of Application of plant nutrients along  Geopolitical uncertainties caused tural practices; and launching several ever available and are economically yet taken off.

the developments in the Indian fertiliser with irrigation is widely accepted by by war and warlike situations in im- schemes to promote domestic fertiliser feasible, such as improved designs of
industry – consumption, production and Indian farmers and ensures superior porting countries; and production and reduce dependency on equipment, new generation material Import of fertilisers
imports – shall have an intricate linkage effi ciency in delivery. Of late, there is a  Supply chain disruptions arising out imports. of construction, and better performing India is heavily dependent of im-

with nutrient supply, decarbonization growing awareness among farmers and of port and traffi c restrictions. catalysts are easily incorporated into ports in the fertiliser sector and there-
and energy security. emphasis on the part of the government Increasing domestic production existing plants. Some have adopted fore maintaining a steady supply chain
regarding use of bio-fertilisers and Urea is the most consumed fertiliser To counter supply chain disruption, advanced operational practices such is important for the country’s agricul-
Modern agriculture heavily depends organic fertilisers to improve soil health in Indian farms. It is heavily subsidized the fi rst step is to increase domestic as rigorous plant monitoring, digitized tural productivity. The defi cit in produc-
on mineral fertilisers for increased crop and promote sustainable agriculture. to the level of one-sixth of its current production. Efforts towards rebuilding process control and online corrosion tion, which is nearly 30% of consump-
yields, sustaining soil health, ensuring market price as per government policy fi ve brownfi eld urea plants – Rama- monitoring. tion, is met by import of raw materials,
balanced nutrition, and sustaining agri- Status of fertiliser industry and is available cheaply across the coun- gundam (Andhra Pradesh), Gorakhpur intermediates and fi nished products.
culture in intensely-cropped areas. According to Research and Mar- try. Some of the Indian farm sectors have (Uttar Pradesh), Sindri and Barauni Joint ventures abroad Imports are undertaken through cana-
They provide essential nutrients that kets, a market research fi rm, the Indian experienced declining crop response due (Bihar) and Talcher (Odisha) – having As has been stated earlier, India’s lised agencies by the Government to
promote plant growth and thus increase fertiliser market is expected to grow to careless application of chemical ferti- a total output of 6.35-mtpa with natural import dependency is to the extent of maintain the supply chain, and private
crop yields, ensuring food security for from $43.54-bn in 2024 to $74.06-bn lisers, especially urea, highlighting the gas as feedstock, have been a success 25% of our requirement of urea, 90% in entities are not allowed to import. Public
the growing population. Soil is a living by 2033, at a CAGR of 6.08% during requirement of balanced fertiliser use story. Only Fertiliser Corporation of case of phosphates (either as raw mate- sector companies Indian Potash Ltd.
substrate and its structure, water-hold- the period. India is the second largest and an effective action plan to manage India (FCI)’s Talcher coal gasifi cation- rial or fi nished fertilisers) and 100% in (IPL), National Fertilisers Ltd. (NFL)
ing capacity, carbon content and nutri- producer of fertilisers globally and the soil health. Excessive use of urea has led based ammonia- urea complex is yet to case of potassic fertilisers. The Govern- and Rastriya Chemicals and Fertilisers
ent distribution determine its long-term market is primarily driven by govern- to upsets in the soil nutrient ratio, aggra- be commissioned. ment has been encouraging Indian pro- Ltd. (RCF) are the authorized agencies
health. ment subsidies, increasing demand for vate degradation and leachates damage ducers to establish joint venture manu- for canalising import of urea on govern-
agriculture, and the need for effi cient the water bodies. Besides, the government has also facturing facilities abroad in countries ment account. Imports of phosphate
The different types of fertilisers farming practices. approved a 0.86-mtpa urea plant by that are rich in fertiliser resources with and potash fertilisers (DAP, MOP and
presently being used in Indian agricul- A major challenge before the govern- the public sector Brahmaputra Valley buyback arrangements and to enter into NPK) are under Open General License
ture include chemical, natural, organic, Challenges ment is the rising cost of fertilisers Fertiliser Corporation Ltd. (BVFCL), long-term agreements for supply of ferti- (OGL) as per Foreign Trade Policy.
and biological. Chemical fertilisers are In the present Indian agricultural and occasional availability issues, as a replacement to two lower capa- liser inputs or fi nished products to India.
produced synthetically and contains situation, major hurdles are: particularly for subsistence farmers. city old plants. The recent Union Budget Producing urea in countries where During 2023-24, India imported
essential plant nutrients like nitrogen  Declining crop response; Import of materials are often subjected Table 2: Fertiliser joint venture projects
(N), phosphorus (P), and potassium (K).  Imbalanced fertiliser usage; to price rise and supply chain disrup-
Natural fertilisers are derived from  Subsidy burden to the exchequer to tions. Both lead to increase in subsidies Company Year Partners & Eequity Product & annual capacity
natural sources such as animal manure, Table1: Production, import & consumption of fertilisers Oman India Fertiliser Co. (OMIFCO), 2005 Oman SAOC-50%, IFFCO 25% Urea, 1.7-mt
compost, and plant residues. As India [Million tonnes] Oman KRIBHCO 25%
is primarily an agrarian country, natu- 2022-23 2023-24 ICS Senegal, Senegal 1980 ICS (93.22%), IFFCO (6.78%) Phosphoric acid, 0.55-mt
ral fertilisers are available abundantly Jordan India Fertiliser Co. JPMC-IFFCO 2014 JPMC (48%), IFFCO (52%) Phosphoric acid, 0.48-mt
and are environmentally friendly and N P O 5 K O Total N P O 5 K O Total IMACID, Morocco 1999 OCP (50%), Chambal (25%) & TCL Phosphoric acid, 0.43-mt
2
2
2
2
improve soil health. Organic fertilisers Production 15.74 5.01 20.75 17.11 4.88 21.99 (25%)
are like natural fertilisers but are pro- Import 5.22 3.76 1.46 10.44 4.65 3.14 1.97 9.75 Tunisia-India Fertiliser Co. (TIFERT) 2013 GCT (Tunisia), CIL & GSFC (India) Phosphoric acid, 0.36-mt
cessed to enhance their nutrient content Consumption 20.21 7.92 1.72 29.85 20.46 8.31 1.88 30.65 GCT (70%), CIL (15%) and GSFC (15%).
and availability. They promote sus- Courtesy: Fertiliser Association of India Source: Ministry of Chemicals & Fertilisers, Govt. of India
174 Chemical Weekly April 1, 2025 Chemical Weekly April 1, 2025 175

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