FERTILIZERS:
ECONOMY
NEWS: What
challenges does India face in fertilizer imports?
WHAT’S
IN THE NEWS?
What impact has the conflict in Ukraine had on the
global fertilizer market and its effects on India?
Fertilizer
Sector in India
Types of
Fertilizers:
·
Urea,
Diammonium Phosphate (DAP), and Muriate of Potash (MOP) are the primary
fertilizers.
India's Global
Position:
·
India is
the second-largest fertilizer consumer globally, after China.
Rising
Demand:
·
Urea and
DAP demand is increasing, while demand for other fertilizers is decreasing.
Key
Fertilizers:
·
Urea: Most
widely used; highly subsidized; produced from natural gas.
·
DAP: Second
most used; contains 46% phosphorus, 18% nitrogen.
·
MOP:
Contains 60% potash; supports plant growth and quality.
Subsidy
Mechanism:
·
Urea Subsidies: Direct
subsidies cover a large portion of costs.
·
Nutrient-Based Subsidy (NBS): For DAP and MOP, based on nutrient content (N, P,
K).
Challenges:
·
High Import Dependency: 20% of urea, 50-60% of DAP, and 100% of MOP are
imported.
·
Financial Burden: ₹1.79 lakh crore subsidy allocation for 2023-24.
·
Impact of Global Conflicts: Ukraine crisis has increased raw material costs,
affecting imports and production.
Impact on
Food Security:
·
Rising
prices and supply issues affect rabi crop production, creating risks for food
security.
Recommendations:
·
Promote
nano-urea, natural farming, and precision fertilization to reduce imports and
encourage sustainable practices.