India aims to halt urea imports by the end of 2025 by boosting domestic production and promoting alternative fertilizers. This is in response to the nation’s significant reliance on imports, which currently satisfy around 30% of its annual urea demand.
Urea Production and Import
Increasing Domestic Production
- Urea production has risen steadily, reaching 284.95 lakh tonnes in 2022-23.
- Despite this, 30% of demand is still met through imports, with key sources being Oman, Qatar, Saudi Arabia, and the UAE.
Government Strategy to End Urea Import
Reviving Closed Fertilizer Plants
- The government’s approach involves reviving closed fertilizer plants across various states.
- Plants at Gorakhpur, Ramagundam, Talcher, Barauni, and Sindri are targeted for revival, with four already operational.
Promoting Alternative Fertilizers
- Encouraging the use of alternative fertilizers like nano liquid urea and nano liquid DAP is a significant part of the strategy.
- Initiatives by entities like IFFCO and Coromandel International Limited are contributing to this effort.
PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth’ (PM-PRANAM)
Incentivizing States and UTs
- The PM-PRANAM scheme, launched in 2023, incentivizes states and UTs to promote alternative fertilizers and balanced fertilizer usage.
Subsidy on Fertilizers
Government Subsidy Mechanism
- The government heavily subsidizes fertilizers, with Rs 1.64 lakh crore allocated for fertilizer subsidy in 2024-25.
- Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP) under the Urea Subsidy Scheme (USS), while other fertilizers operate under the Nutrient Based Subsidy Policy.