Fertiliser and Fuel Supply Crisis: Impact of West Asia Conflict on India’s Agriculture

The West Asia conflict disrupting fertiliser and fuel supply chains has exposed vulnerabilities of India’s fossil-fuel-dependent agricultural model.

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Recent Conflicts Affecting Fertiliser and Fuel Supply

• Strait of Hormuz Disruption: Closure of Strait of Hormuz affected  ~1/3rd of the global fertilizer trade, constraining supplies to import-dependent countries like India.
• Export Restrictions by Key Suppliers: Russia (~20% global fertilizer trade) and China curtailed fertilizer exports, worsening shortages.
• Rising Input Prices: Global supply shocks have triggered spikes in fertilizer and fuel prices.
• Energy Dependency Shock: Over 50% of India’s natural gas (fertiliser feedstock) is imported, increasing vulnerability.

India’s Dependence on Fossil-Fuel-Based Agricultural Inputs

• Fertiliser-Intensive Farming: NPK consumption rose from 69,800 tonnes (1950-51) to 32.9 million tonnes (2024-25).
• Shift to High-Analysis Fertilisers: Urea (46% N) dominates with 38.8 mt consumption, replacing low-nutrient traditional inputs.
• Mechanisation Dependency: Tractor stock crossed 12 million, replacing draught animals and increasing diesel dependence.
  • Draught animal power reduced to just 2.3% of total farm power (2024-25).
• Petrochemical-Based Inputs: Pesticides rely on petroleum-derived solvents and emulsifiers.

Impact on Farmers

• Input Availability Constraints: Supply disruptions reduce access to fertilisers and fuel during critical crop cycles.
• Rising Cost of Cultivation: High diesel (6–7 litres/hour for tractors) and fertiliser prices increase production costs.
• Agrarian Distress: Higher input costs with uncertain returns reduce profitability, especially for small farmers.
• Food Security Risks: Dependence on imported inputs threatens stable agricultural output.

Way Forward

• Promoting Organic and Natural Farming: Reduce dependence on chemical fertilisers through bio-inputs and traditional practices.
• Enhancing Resource Efficiency: Adopt micro-irrigation, precision farming, and balanced fertilizer use.
• Strengthening Domestic Capacity: Boost indigenous fertiliser production and alternative nutrient sources.

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Conclusion

Reducing fossil-fuel dependency in agriculture is essential for ensuring resilience, sustainability, and long-term food security amid global geopolitical uncertainties.

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