India's Fertilizer Self-Reliance Stumbles as Imports Surge
India's agriculture sector is facing a significant challenge. The country's push for fertilizer self-sufficiency, known as atmanirbharta, is showing clear signs of strain. Recent data reveals a sharp increase in fertilizer imports during the current financial year. This trend raises serious questions about domestic production capabilities and their impact on both farmers and the national budget.
Import Numbers Tell a Troubling Story
According to the Fertilizer Association of India, the supply chain has undergone a dramatic shift. Between April and November of FY26, urea imports skyrocketed by 120% compared to the previous year. The total reached 7.2 million tonnes. Meanwhile, domestic urea production actually declined by 3.7% during the same period.
The situation is similar for other key fertilizers. Imports of di-ammonium phosphate, commonly called DAP, rose by 54% to 5.5 million tonnes. Complex NPK fertilizer imports nearly doubled, hitting 2.7 million tonnes. Industry experts now describe these imports as structural. They are no longer just filling temporary gaps but have become a permanent feature of India's fertilizer landscape.
A Setback for Self-Sufficiency Goals
This surge marks a clear reversal in India's long-term strategy. Back in 2020, the government announced ambitious plans to achieve fertilizer self-reliance by 2023. The strategy involved reviving old urea plants and promoting new technologies like nano urea. While some progress was made initially, recent developments have disrupted that positive trajectory.
The numbers illustrate the scale of the problem. In 2024-25, domestic production met about 77% of India's total fertilizer consumption. That share has now dropped sharply to just 64% for the April-November period of FY26. Local output simply cannot keep pace with rising farm demand.
Farmers Feel the Pinch Directly
The consequences are already visible across several states. Farmers report serious difficulties in procuring essential fertilizers like urea. Many have been forced to stand in long queues for days. Others have resorted to paying premium prices on the black market. This situation has triggered protests in states including Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, and Telangana.
Subsidy Burden Grows Heavier
Rising import dependence carries another heavy cost. It significantly increases the government's fertilizer subsidy bill. Total subsidies have jumped from ₹81,124 crore in 2019-20 to approximately ₹1.83 trillion in 2024-25. Nearly 70% of this massive outgo supports urea, which farmers purchase at over 90% subsidy.
This pricing structure creates a problematic incentive. Farmers pay less than one-tenth of urea's actual cost. Naturally, this encourages excessive use of nitrogen-heavy fertilizers compared to other nutrients. The imbalance has serious implications for long-term agricultural sustainability.
What's Driving the Demand Spike?
Several factors explain the sharp increase in fertilizer demand. Ample rainfall during the Kharif season encouraged farmers to expand their cropped area. They planted more corn and rice, which boosted demand for urea and DAP. Now, robust wheat sowing in the ongoing Rabi season is expected to push consumption even higher.
The overall trend shows steady growth. Urea consumption in India has climbed from about 31 million tonnes in 2013-14 to an estimated 40 million tonnes in 2025-26. This consistent increase puts continuous pressure on both production and import systems.
Soil Health Faces Growing Threats
Beyond immediate supply issues, there are deeper environmental concerns. The agriculture ministry recently highlighted studies from the Indian Council of Agricultural Research. These studies identify imbalanced chemical fertilizer use as a key factor degrading soil health. Excessive application of nitrogenous fertilizers can actually lower crop yields over time while worsening soil degradation.
A Parliamentary Standing Committee submitted a report in December with clear recommendations. It urged the government to train farmers in balanced nutrient use, crop rotation, and natural farming practices. However, industry insiders argue that real change requires addressing subsidy structures. Unless urea prices are corrected by reducing subsidies, farmers will likely continue overusing it compared to other nutrients.
The current situation presents a complex challenge. India must balance immediate farm needs with long-term sustainability goals. The path forward requires careful policy adjustments that support both food security and soil health.
