India’s food security rests not only on higher crop production but also on ensuring that farmers receive fertilizers on time, at affordable prices and in adequate quantities. In an era marked by geopolitical tensions, disrupted supply chains and volatile energy markets, the government is pursuing an ambitious strategy to strengthen fertilizer security through domestic manufacturing, diversified imports, digital governance, technological innovation and sustainable farming practices.
The government begins every crop season by estimating fertilizer demand in coordination with state governments before allocating supplies across the country. Distribution is monitored through the Integrated Fertilizer Management System (iFMS), enabling real-time tracking of stocks and movement of urea, DAP, MOP and NPK fertilizers. To protect farmers from international price shocks, the Centre has approved ₹41,533.81 crore under the Nutrient Based Subsidy (NBS) Scheme for Kharif 2026. An additional support of ₹3,500 per tonne has ensured that DAP continues to be sold at ₹1,350 per 50-kg bag despite rising global prices.
Global Uncertainties
Recent conflicts in West Asia and disruptions in the Red Sea exposed the vulnerability of global fertilizer supply chains. India responded by diversifying imports beyond traditional suppliers, establishing long-term arrangements with countries including Belgium, Egypt, Germany, Morocco and the United States. Long-term agreements with Russia and Saudi Arabia have further strengthened supplies of phosphatic and potassic fertilizers, while timely global tenders ensured uninterrupted imports of urea during 2026. Strategic procurement initiatives helped cushion the impact of disruptions in the Strait of Hormuz and maintained fertilizer availability across the country.
Read Also: Farmer’s New Harvest, Carbon Farming
At the same time, India is steadily reducing dependence on imports by expanding domestic manufacturing capacity. Six new fertilizer plants commissioned under the New Investment Policy have added 76.2 lakh metric tonnes of annual capacity, taking domestic urea production capability to 269.42 lakh metric tonnes. The recently approved National Investment Policy for Urea-2026 seeks to attract further investments through improved financial incentives and lower foreign exchange risks, while new projects at Talcher and Namrup are expected to boost indigenous production further.
Efficient Subsidies
The government is also making fertilizer subsidies more efficient through technology. Urea continues to be sold at a highly subsidized price of ₹242 per 45-kg bag, while the Direct Benefit Transfer (DBT) system ensures subsidy payments reach manufacturers transparently after Aadhaar-authenticated sales. During 2025-26, subsidized fertilizers worth ₹2.17 lakh crore were supplied through nearly 2.87 lakh retail outlets, benefiting around 8.4 crore farmers. The ‘One Nation One Fertilizer’ initiative has further standardized subsidized products under the BHARAT brand, simplifying logistics and reducing diversion.
Improving soil health has become another major priority. Since 2014-15, more than 26 crore Soil Health Cards have been distributed, enabling farmers to apply fertilizers based on scientific soil analysis rather than guesswork. Studies indicate that scientific nutrient management has reduced fertilizer use by 8-10 percent while improving crop yields by 5-6 percent. Farmers have also reported lower cultivation costs and better nutrient balance, particularly through reduced urea consumption and increased use of potassium wherever required.
Nano Fertilizers
India is simultaneously emerging as a global leader in nano fertilizers. Sales of Nano Urea and Nano DAP have crossed 1,593 lakh bottles, with field trials demonstrating that Nano Urea can replace up to half of conventional urea while increasing crop yields. Large-scale promotional campaigns, scientific validation and the Namo Drone Didi Scheme are encouraging precision application of fertilizers and reducing nutrient losses.
The fertilizer sector is also preparing for a greener future. Under the National Green Hydrogen Mission, the government has notified standards for Green Ammonia and Green Methanol, facilitated long-term green ammonia supply agreements and initiated pilot Green Urea projects. These initiatives aim to reduce dependence on imported fossil-based feedstock while lowering the carbon footprint of fertilizer production.
Latest Technologies
Digital technologies are expected to play an increasingly important role in fertilizer management. Artificial intelligence, remote sensing, drone-based application and precision farming are being integrated to improve nutrient-use efficiency, while collaborations among research institutions, startups and private industry are accelerating innovation in specialty fertilizers and digital advisory services.
Looking ahead to Viksit Bharat 2047, the government’s vision extends beyond fertilizer availability to building a transparent, technology-driven and environmentally sustainable nutrient ecosystem. The e-Bill System, integrated with the Public Financial Management System, is digitising subsidy payments worth nearly ₹2 lakh crore annually, ensuring faster settlements, stronger fiscal discipline and greater transparency. Together, these reforms seek to strengthen India’s fertilizer security while supporting higher agricultural productivity, healthier soils and long-term food security.
Read Also: Natural Farming: Why India Must Move From Heavy Fertiliser Subsidies to Smarter Farmer Incentives
