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Introduction

The Strait of Hormuz crisis has exposed structural vulnerabilities in India’s fertiliser sector, marked by import dependence, subsidy distortions, and weak alternatives—posing serious risks to agricultural productivity, food security, and farmer resilience.

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Causes Affecting India’s Agricultural Security

• High import dependence for fertilisers: India relies heavily on imported urea, DAP, and potash.
  Eg: Government data shows ~80–90% potash and ~50% DAP imported.
• Geopolitical chokepoints vulnerability: Supply disruption risks due to dependence on West Asian routes
  Eg: Strait of Hormuz handles a major share of fertiliser raw material trade.
• Subsidy-driven overuse of urea: Price distortion encourages excessive nitrogen use.
  Eg: Urea heavily subsidised vs phosphatic/potassic fertilisers.
• Limited domestic production capacity: Inadequate indigenous raw materials like natural gas and rock phosphate.
  Eg: India imports rock phosphate for DAP production.
• Slow adoption of alternatives: Biofertilisers and organic inputs remain underutilised.
  Eg: Government schemes like PM-PRANAM are still in early stages.

Implications for India’s Agricultural Security

• Rising input costs for farmers: Global price shocks increase fertiliser prices.
  Eg: Post-Ukraine war surge in fertiliser prices affected Indian farmers.
• Threat to crop productivity: Supply shortages can reduce fertiliser application directly impacting yields of rice and wheat.
• Fiscal burden on government: Increased subsidy outgo to shield farmers.
  Eg: Fertiliser subsidy crossed ₹2 lakh crore in recent years.
• Soil health degradation: Imbalanced fertiliser use affects long-term productivity due to overuse of urea leading to declining soil fertility.
• Food security risks: Lower yields and rising costs threaten national food security.
  Eg: Agriculture supports >50% population livelihoods in India.

Way Forward

• Diversify import sources and supply chains: Reduce dependence on West Asian routes
  Eg: Agreements with countries like Morocco and Russia.
• Boost domestic fertiliser production: Enhance self-reliance in urea and phosphatic fertilisers
  Eg: Revival of urea plants like Gorakhpur
• Promote balanced fertiliser use: Encourage NPK balance through policy reforms like Nutrient-Based Subsidy (NBS) scheme.
• Scale up biofertilisers and alternatives: Reduce chemical fertiliser dependence
  Eg: Promotion of nano-urea by IFFCO.
• Strengthen soil health management: Improve long-term agricultural sustainability through schemes like Soil Health Card Scheme.

Conclusion

The Strait of Hormuz crisis highlights India’s fertiliser vulnerability as a critical agricultural risk. Addressing import dependence, correcting policy distortions, and promoting sustainable alternatives are essential to ensure resilient agriculture and long-term national food security.

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