Fertilizer production in India

Fertiliser production in India is a critical component of the nation’s agricultural and industrial sectors, providing essential nutrients to support the productivity of India’s vast agrarian economy. Since independence, India has developed one of the world’s largest fertiliser industries, ensuring self-sufficiency in major fertiliser nutrients while supporting the goals of food security and sustainable agriculture.

Background and Importance

Agriculture remains the backbone of the Indian economy, employing a large section of the population and contributing significantly to GDP. However, much of India’s soil is naturally deficient in key nutrients such as nitrogen (N), phosphorus (P), and potassium (K). The use of chemical fertilisers became crucial after the Green Revolution in the 1960s, which relied heavily on high-yielding crop varieties and nutrient management to increase food production.
The Government of India therefore established a strong fertiliser production base, alongside import arrangements and distribution mechanisms, to ensure an adequate and timely supply of plant nutrients across the country.

Types of Fertilisers Produced in India

Fertilisers in India are classified into two main categories:
1. Chemical (Inorganic) Fertilisers

• Nitrogenous Fertilisers: Supply nitrogen, mainly in the form of urea, ammonium sulphate, and calcium ammonium nitrate (CAN).
• Phosphatic Fertilisers: Provide phosphorus; examples include single superphosphate (SSP) and diammonium phosphate (DAP).
• Potassic Fertilisers: Supply potassium, typically as muriate of potash (MOP).
• Complex Fertilisers: Contain combinations such as NPK and NP formulations, e.g., NPK 10:26:26, NPK 20:20:0, etc.

2. Organic and Bio-Fertilisers

• Derived from natural sources such as compost, green manure, and biological nitrogen-fixing organisms (e.g., Rhizobium, Azotobacter).
• Support sustainable agriculture and reduce dependence on synthetic chemicals.

Evolution of Fertiliser Production

The fertiliser industry in India developed in phases:
1. Early Stage (Before 1950): Fertiliser production was minimal. The first plant was set up at Ranipet (Tamil Nadu) in 1906 to produce superphosphate. Imports met most domestic requirements.
2. Expansion after Independence (1951–1970): Post-independence, the government took direct initiative to build new fertiliser plants to support planned agricultural development. The Fertiliser Corporation of India (FCI) and the Hindustan Fertiliser Corporation were established to expand production capacity.
3. Green Revolution Era (1970–1990): High-yielding varieties of wheat and rice increased demand for nitrogenous fertilisers, leading to large-scale investment in urea plants. The public and private sectors jointly expanded production. The establishment of the Department of Fertilisers (1977) under the Ministry of Chemicals and Fertilisers streamlined policy and coordination.
4. Liberalisation and Modernisation (Post-1991): The economic reforms of the 1990s encouraged private and cooperative participation. New technologies were adopted to improve efficiency and reduce energy use. Subsidy reforms and nutrient-based pricing policies were introduced to rationalise fertiliser use.

Major Fertiliser Plants and Centres

India’s fertiliser production is concentrated in major public, private, and cooperative sector units. Key producers include:

• Public Sector Units:
  • National Fertilizers Limited (NFL)
  • Rashtriya Chemicals and Fertilizers (RCF)
  • Brahmaputra Valley Fertilizer Corporation Limited (BVFCL)
  • Hindustan Urvarak and Rasayan Limited (HURL)
  • Madras Fertilizers Limited (MFL)
• Cooperative Sector Units:
  • Indian Farmers Fertiliser Cooperative Limited (IFFCO)
  • Krishak Bharati Cooperative Limited (KRIBHCO)
• Private Sector Units:
  • Chambal Fertilizers and Chemicals Ltd.
  • Tata Chemicals Ltd.
  • Zuari Agro Chemicals Ltd.
  • Nagarjuna Fertilizers and Chemicals Ltd.

Prominent fertiliser production centres include Sindri, Nangal, Namrup, Vadodara, Hazira, Trombay, Panipat, Gorakhpur, Tuticorin, and Paradeep.

Raw Materials and Inputs

Fertiliser manufacturing depends on several raw materials:

• Natural gas: The primary feedstock for urea and ammonia production.
• Rock phosphate: Used for manufacturing phosphatic fertilisers.
• Sulphur and phosphoric acid: Essential for producing superphosphates.
• Potash minerals: Largely imported, as India lacks significant natural deposits.

To secure supply, India imports rock phosphate, sulphur, ammonia, and potash from countries like Jordan, Morocco, Canada, and Russia.

Current Production Scenario

As of recent years, India ranks second in the world (after China) in the production and consumption of fertilisers.

• Urea: India is self-sufficient in urea production to a large extent.
• Phosphatic Fertilisers: Partially self-reliant; imports phosphoric acid and rock phosphate.
• Potassic Fertilisers: Almost entirely imported.

Government initiatives such as the Make in India campaign and revival of closed fertiliser units (e.g., Gorakhpur, Barauni, Sindri) aim to enhance domestic production and reduce import dependency.

Fertiliser Policy and Subsidy Framework

The fertiliser sector is highly regulated due to its strategic importance for agriculture. Key policy measures include:

• Retention Pricing Scheme (RPS): Introduced to ensure a uniform retail price for urea across the country while compensating manufacturers for cost variations.
• Nutrient-Based Subsidy (NBS) Scheme (2010): Provides subsidies based on nutrient content (N, P, K, S) rather than product type, encouraging balanced fertiliser use.
• Urea Policy Reforms: Partial decontrol of fertiliser pricing, fixed maximum retail prices (MRP), and incentives for energy-efficient production.
• Direct Benefit Transfer (DBT): Introduced to streamline subsidy disbursal directly to farmers and prevent misuse.

Environmental and Sustainable Challenges

Despite its contribution to food security, fertiliser production and overuse pose environmental concerns:

• Soil degradation due to imbalanced nutrient use.
• Water contamination from nitrate leaching and phosphate runoff.
• Greenhouse gas emissions from ammonia and urea plants.

To address these, the government promotes:

• Integrated Nutrient Management (INM): Combining chemical, organic, and biofertilisers.
• Slow-release and nano-fertilisers: To improve efficiency and reduce waste.
• Promotion of biofertilisers and organic farming: To minimise environmental impact.

Future Prospects and Developments

The future of fertiliser production in India lies in technological innovation, sustainability, and diversification. Key developments include:

• Revival of closed fertiliser plants under HURL and other joint ventures.
• Adoption of energy-efficient and environment-friendly technologies.
• Development of nano-urea and green ammonia as part of India’s decarbonisation efforts.
• Expansion of public-private partnerships (PPP) in fertiliser production and distribution.
• Promotion of customised fertilisers based on soil testing and crop requirements.