India has made a significant leap towards self-reliance in the critical agricultural sector, with domestic production now fulfilling a substantial 73% of the country's total fertiliser requirements for the fiscal year 2024-25. This marks a remarkable improvement from just 57% in the 2020-21 period, showcasing the success of targeted government policies aimed at reducing import dependency and securing the nation's food production chain.
A Strategic Push for Self-Reliance
The data, presented by the Ministry of Chemicals and Fertilisers, highlights a concerted effort to bolster domestic manufacturing capacity. The government's strategy has focused on reviving dormant fertiliser plants and ensuring the efficient operation of existing units. This multi-pronged approach has directly translated into higher output of key soil nutrients.
In concrete terms, the total domestic production of fertilisers reached an estimated 42.5 million tonnes during 2024-25. To meet the remaining demand, imports accounted for approximately 15.5 million tonnes. This improved domestic-to-import ratio is a direct result of policy measures designed to incentivise production within the country's borders.
Breaking Down the Production Numbers
A closer look at the production figures reveals progress across different fertiliser types. For urea, a crucial nitrogen-based fertiliser, domestic production has seen a steady increase. From 25 million tonnes in 2020-21, output rose to 28 million tonnes in 2022-23 and is estimated to have reached 32 million tonnes in 2024-25.
The story is similarly positive for Phosphatic and Potassic (P&K) fertilisers like Diammonium Phosphate (DAP). Production of these complex fertilisers jumped from 8.5 million tonnes in 2020-21 to a projected 10.5 million tonnes in the last fiscal year. This growth is partly attributed to the Nutrient-Based Subsidy (NBS) scheme, which provides a fixed subsidy per kilogram of nutrient (Nitrogen, Phosphate, Potash, and Sulphur), allowing manufacturers flexibility and encouraging innovation in product mixes.
Implications for Farmers and Food Security
This surge in domestic production carries profound implications for India's agricultural economy and its strategic goals. First and foremost, it enhances the stability and predictability of fertiliser supply for millions of farmers. Reduced reliance on volatile international markets and supply chains helps in maintaining consistent availability and curbing extreme price fluctuations.
Secondly, it strengthens India's food security by ensuring that a vital input for crop production is largely under domestic control. The government's substantial investment in subsidies, which exceeded Rs 1.5 lakh crore in 2024-25, continues to shield farmers from the full impact of global price rises, even as local manufacturing increases.
The path forward involves sustaining this momentum. The government continues to promote initiatives like the PM PRANAM scheme to encourage the balanced use of fertilisers and reduce excessive consumption. The focus is now on achieving self-sufficiency not just in quantity but also in the efficient and sustainable use of these resources, ensuring long-term productivity of India's farmlands.
