Improving Fertilizer Use Efficiency in India: Challenges, Subsidy Issues & Sustainable Solutions

Improving Fertilizer Use Efficiency in India: Challenges, Subsidy Issues & Sustainable Solutions 19 May 2026

Improving Fertilizer Use Efficiency in India: Challenges, Subsidy Issues & Sustainable Solutions

The current geopolitical situation, particularly the conflict between Iran and the USA, has severely impacted India’s ability to import natural gas from West Asia. This is critical because natural gas is a primary component used to manufacture urea

India’s Fertiliser Dependence

  • Urea: India produces around 80% of its urea requirement domestically.
    • Around 20% is imported.
    • Urea production requires natural gas, much of which is imported.
  • Phosphatic Fertilisers: India is highly dependent on imports for phosphatic fertilisers such as DAP.
    • India lacks sufficient rock phosphate reserves.
    • Countries like Morocco and Jordan are important suppliers.

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Impact of Geopolitical Tensions

  • War or instability in West Asia can disrupt oil, gas, and fertilizer supplies.
  • If India cannot import natural gas or phosphatic fertilisers smoothly, agricultural production may suffer.
  • Fertiliser shortage can directly affect farmers’ productivity and food security.

Fertiliser Subsidy Problem

  • India spends a very large amount on fertiliser subsidies.
  • However, a significant portion of fertilisers does not actually benefit crops.
  • Fertilisers are often lost through:
    • Leaching into groundwater.
    • Runoff into water bodies.
    • Evaporation or volatilisation into the atmosphere.
  • This reduces efficiency and causes environmental damage.

Fertiliser Trap

  • The fertiliser trap refers to a cycle where excessive fertiliser use reduces soil organic matter.
  • Soil organic matter acts like a sponge that holds water and nutrients.
  • When excessive chemical fertilisers are used, organic matter declines.

How the Trap Works?

  • Excessive fertilizer use damages soil organic matter.
  • Poor organic matter reduces nutrient absorption.
  • Farmers then feel that crops need more fertilizer.
  • They apply even more fertilizer.
  • This further damages the soil.
  • The cycle continues and farmers become trapped in higher input costs and lower soil health.

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Problems with Existing Policies

  • Nutrient Based Subsidy
    • Nutrient Based Subsidy was a useful idea.
    • However, urea was kept outside its framework.
    • As a result, urea remained artificially cheap.
    • Farmers overused urea, disturbing the ideal nutrient balance of nitrogen, phosphorus, and potassium.
  • Neem-Coated Urea
    • Neem-coated urea was introduced to reduce misuse and slow nutrient release.
    • It helped to some extent.
    • However, it could not fully prevent nitrogen loss through ammonia volatilisation.
  • Phosphatic Fertiliser Loss
    • Phosphatic fertilisers often enter water bodies through runoff.
    • This can cause eutrophication and algal bloom.
    • Such pollution affects aquatic ecosystems and water quality.
  • Role of MSP in Fertiliser Imbalance
    • The government announces MSP for many crops, but effective procurement mainly happens for rice, wheat, and sugarcane.
    • This encourages farmers to grow these crops repeatedly.
    • It discourages crop diversification.
    • Pulses are not grown adequately because farmers fear weak procurement.
    • This increases dependence on nitrogen fertilisers.

Importance of Pulses

  • Pulses have root nodules containing Rhizobium bacteria.
  • Rhizobium fixes atmospheric nitrogen into the soil.
  • If pulses are grown in rotation with cereals, the next crop requires less nitrogen fertilizer.
  • Therefore, pulses improve soil fertility and reduce fertilizer dependence.

Water Stress and Rice Cultivation

  • India produces more rice than required and exports a large quantity.
  • Rice cultivation requires very high water input.
  • Producing and exporting rice indirectly means exporting groundwater.
  • Using rice for ethanol production is also problematic because it diverts food crops and water-intensive produce toward fuel.

Dalhan Atmanirbharta Mission

  • The government launched a mission to promote self-reliance in pulses.
  • It aimed to ensure procurement of pulses like tur, urad, and masoor at MSP.
  • However, the increase in pulse cultivation area has remained limited.
  • Better implementation is needed because pulses are important for nutrition, soil health, and import reduction.

Way Forward

  • Focus on Organic Matter: Farmers should be encouraged to use compost, manure, and biogas residues to restore soil health.
  • Quality over Aesthetics: Instead of focusing on “aesthetics” like using drones for spraying, the government should prioritize developing high-yielding crop varieties.
  • Policy Coordination: The Inter-ministerial National Nitrogen Steering Committee must be revived to ensure coordination between the Ministries of Agriculture, Fertilizer, and Finance
  • Reduce Chemical Fertiliser at Basal Dose Stage: At the time of sowing, farmers should use organic manure instead of chemical fertilisers.
    • This can reduce fertiliser use without reducing yield.
  • Improve Crop Varieties: India should invest in high-yielding and climate-resilient crop varieties.
    • Scientific research should focus on crops that require less water and fertiliser.
  • Promote Pulses and Crop Rotation: Pulses should be promoted through assured procurement.
    • Crop rotation should be encouraged to restore soil fertility.
  • Revive National Nitrogen Steering Committee: The Inter-Ministerial National Nitrogen Steering Committee should be revived.
    • The Agriculture Ministry, Fertiliser Ministry, and Finance Ministry should coordinate to reduce nitrogen wastage and improve fertiliser efficiency.

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Conclusion

  • India’s fertiliser policy must shift from supply expansion to efficiency, sustainability, and soil health. Excessive fertiliser use has created a fertiliser trap, damaged soil organic matter, and increased subsidy wastage. 
  • A balanced policy should promote organic inputs, pulses, crop diversification, efficient fertiliser use, and coordinated governance.
Mains Practice:

Q. The relentless pursuit of cereal-centric food security has inadvertently pushed Indian agriculture into a ‘Fertilizer Trap’. Analyze the statement and evaluate the role of the ‘Dalhan Atmanirbharta Mission’ in promoting crop diversification and environmental sustainability. (15 marks, 250 words)

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