India’s Fertiliser Security
India faces a growing challenge in fertiliser security due to escalating tensions in the Middle East, particularly the Iran-Israel conflict. The crisis threatens crucial supply chains for fertilisers and raw materials, directly impacting the country’s food production and agricultural stability. India’s heavy reliance on Gulf countries for fertiliser imports and natural gas exposes it to risks from geopolitical disruptions. This article outlines the current scenario, vulnerabilities, and strategic responses shaping India’s fertiliser security landscape.
Dependence on Middle Eastern Fertiliser Imports
India imports about 20-25% of its fertilisers from Gulf countries such as Qatar, Saudi Arabia, and Oman. These imports include urea, diammonium phosphate (DAP), and natural gas, essential for domestic fertiliser production. The Strait of Hormuz, a narrow shipping lane, is the main transit route. Any disruption here could lead to supply shortages and price hikes, affecting farmers nationwide.
Types of Fertilisers at Risk
India imports roughly 20% of its urea and 60% of its DAP from the Gulf. Muriate of potash (MOP) is sourced mainly from Canada, Belarus, and Israel. Since Israel is involved in the current conflict, MOP supplies face indirect risks. Urea and DAP are most vulnerable due to their Gulf origin and dependence on natural gas feedstock. Disruptions in these supplies can severely impact crop yields.
Current Preparedness and Strategic Gaps
India’s fertiliser imports are governed by long-term agreements and managed by public sector undertakings. However, the country lacks large strategic reserves, maintaining only 30-45 days of operational stock. This minimal buffer heightens vulnerability during peak sowing seasons like Kharif and Rabi. Despite lessons from the Russia-Ukraine war, India has not established a robust fertiliser buffer or diversified its supplier base sufficiently.
Efforts Towards Diversification and Self-Reliance
India aims for 90% self-sufficiency in urea by 2025 through reviving domestic plants. However, phosphatic and potassic fertilisers still depend on imports due to raw material scarcity. Joint ventures abroad, such as with Morocco’s OCP, are pursued to secure phosphate supplies. Expanding supplier diversity remains challenging due to logistics and geopolitical factors.
Challenges in Domestic Fertiliser Sector
Several structural issues limit India’s fertiliser self-reliance. Many plants are ageing and inefficient. Raw material imports remain high, creating dependency. Distribution delays and logistical bottlenecks worsen during peak seasons. Emerging alternatives like nano, bio, and organic fertilisers have yet to scale. Policy responses tend to be reactive rather than proactive.
Impact on Small and Marginal Farmers
Government subsidies shield farmers partially. Urea is fully subsidised with fixed retail prices. DAP and MOP fall under nutrient-based subsidies, exposing farmers to price fluctuations. Delays in subsidy payments and supply disruptions disproportionately affect smallholders. Rising subsidy bills strain public finances and may limit investment in broader agricultural infrastructure.
Fertiliser Security as a National Priority
Given fertilisers’ critical role in food security and rural incomes, their supply must be treated as a national security issue. Stable fertiliser availability safeguards harvests and economic stability. Strengthening international partnerships with countries like Morocco, Canada, Jordan, and Israel is essential. Long-term contracts and alternate shipping routes can reduce geopolitical risks.
Potential Impact on 2025 Crop Seasons
Supply disruptions could delay wheat sowing in Rabi states and reduce fertiliser availability for Kharif crops like cotton and pulses. Farmers may cut fertiliser use or switch crops, lowering productivity. Rising global prices could increase India’s fertiliser subsidy burden beyond Rs 2.5 lakh crore. This may trigger farmer unrest and affect overall food security.
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