What’s Changing in India’s Fertilizer Strategy 2025? Big Reforms Farmers Must Know!

What’s Changing in India Fertilizer Strategy 2025 ? Big Reforms Farmers Must Know!

Fertilizers play a crucial role in enhancing agricultural productivity. Alongside quality seeds and reliable irrigation, fertilizers are among the most vital components for increasing crop yields. Since the Green Revolution, India has witnessed a steady rise in fertilizer usage, helping the nation move toward food security and self-reliance.

According to the Economic Survey 2024–25, agriculture and its allied sectors contribute around 16% to India’s Gross Domestic Product (GDP) and support the livelihoods of over 46% of the population. This makes agriculture not just a source of food, but also a driver of rural employment, growth, and socio-economic stability.

Recognizing the critical role fertilizers play in this ecosystem, the Indian government increased the Department of Fertilizers’ budget from ₹1.68 lakh crore to ₹1.91 lakh crore for FY 2024–25. This budget expansion reflects the government’s commitment to India’s fertilizer strategy in 2025, taking into account global fertilizer trends, natural gas prices, and growing domestic demand.

What Are Fertilizers?

Fertilizers are concentrated plant nutrients made from inorganic chemicals. They provide essential elements that plants need for healthy growth. Unlike organic composts, fertilizers are used in smaller quantities but supply nutrients in much higher concentrations.

Fertilizers are categorized as:

• Single nutrient fertilizers (e.g., Urea – nitrogen)

• Mixed fertilizers (combinations of NPK – Nitrogen, Phosphorus, Potassium)

• Micronutrient fertilizers (Zinc, Boron, etc.)

These fertilizers are available in solid and liquid forms. However, if not applied correctly, they can wash away with rain or irrigation water before being absorbed by plants.

Fertilizer Application Techniques

The success of fertilizer usage depends on proper timing and method of application. Efficient use ensures better crop yield and minimizes losses due to runoff or soil reactions.

• Timing: Usually just before or after sowing

• Mode: Based on soil, crop type, and irrigation system — can be sprayed or placed directly in the soil

Correct application maximizes absorption and reduces environmental impact, a key focus of India fertilizer strategy 2025.

India’s Fertilizer Industry: Growth at a Glance

Over the last decade, India’s fertilizer industry has shown robust growth. Total fertilizer production increased from 385.39 LMT (lakh metric tonnes) in 2014–15 to 503.35 LMT in 2023–24.

Record Domestic Urea Production

In 2023–24, India achieved its highest-ever domestic urea production: over 314 LMT. This was made possible due to six new urea plants that were commissioned across the country in the past six years, increasing total production capacity by 76.2 LMT.

Fertilizer Production Share by Sector (2023–24)

• Public sector: 17.43%

• Cooperative sector: 24.81%

• Private sector: 57.77%

Private entities continue to play a significant role in India’s fertilizer growth and innovation.

Fertilizer Consumption and Import Dependency

India’s annual fertilizer consumption in 2023–24 stood at 601 LMT, out of which 503 LMT was domestically produced, and the remaining 177 LMT was imported.

Fertilizer-wise Self-Reliance:

• Urea: 87% produced domestically

• NPK fertilizers: 90% domestic production

• DAP (Di-ammonium Phosphate): Only 40% domestic

• MOP (Muriate of Potash): Fully imported

India fertilizer strategy 2025 aims to reduce dependency, especially for DAP and MOP.

Government Support and Subsidies

Budget Allocation (FY 2024–25)

• Total fertilizer subsidy: ₹1.91 lakh crore

• Nutrient Based Subsidy (NBS): ₹54,310 crore (revised from ₹45,000 crore)

• Urea price for farmers: Fixed at ₹242 per 45 kg bag (unchanged since 2018)

Nutrient Based Subsidy Scheme

Introduced in 2010, the NBS scheme provides fixed subsidies for P & K fertilizers (like DAP) based on nutrient content. Under this, fertilizer companies can set market-based MRP, which is monitored by the government.

As of March 2025, the cabinet approved revised NBS rates for the Kharif season (April–September 2025) with a total outlay of ₹37,216 crore.

One Nation One Fertilizer (ONOF)

Launched to unify branding and promote transparency, this initiative mandates all subsidized fertilizers to be sold under the “Bharat” brand name (e.g., Bharat Urea, Bharat DAP).

It reduces confusion among farmers who earlier faced multiple brands with varying prices and qualities.

Reviving and Launching Fertilizer Plants

To boost domestic capacity, India has revived multiple fertilizer plants under the New Investment Policy (NIP) 2012. Highlights include:

These plants together add 76.2 LMT to India’s fertilizer production capacity — a cornerstone of the India fertilizer strategy 2025.

Promoting Balanced and Sustainable Fertilizer Use

Overuse of nitrogen-based fertilizers leads to soil degradation and nitrate contamination in groundwater, posing health risks. To address this, the government is pushing multiple green initiatives:

1. Nano Fertilizers

Nano fertilizers are nutrients enclosed in nano-materials that release nutrients slowly for better absorption.

• Promoted via awareness campaigns, demonstrations, and field tests

• Available across PM Kisan Samriddhi Kendras (PMKSKs)

• Pilot projects underway in 100 districts

2. Neem-Coated Urea (NCU)

NCU is regular urea coated with neem oil. It:

• Slows nitrogen release

• Enhances absorption

• Reduces fertilizer requirement by ~10%

• Minimizes nitrogen loss due to leaching

3. PM-PRANAM Yojana

This program encourages states to reduce chemical fertilizer use and adopt bio-fertilizers, compost, and organic inputs. Incentives are provided to states showing a decline in chemical consumption.

4. Biofertilizers and Organic Nutrient Promotion

Using strains like Rhizobium, Azotobacter, and PSB, the government promotes biological solutions to reduce chemical dependency and improve soil health.

5. Soil Health Card Scheme

Farmers receive detailed soil test reports every two years, helping them understand nutrient needs and apply fertilizers accordingly. This improves both efficiency and productivity.

Digital and Technological Integration

iFMS (Integrated Fertilizer Management System)

Tracks movement from production to retail in real time. Helps monitor availability and manage stock at the state level.

mFMS (Mobile Fertilizer Management System)

A mobile platform for:

• Dealer registration

• Real-time stock tracking

• MIS reports

• Locating nearby fertilizer dealers

International Fertilizer Agreements

India is building strong partnerships to secure long-term fertilizer supplies:

Saudi Arabia

• India signed multi-year contracts for DAP imports with Saudi company Ma’aden.

• Ensures 31 LMT DAP/year from FY 2025–26 for five years.

• DAP imports from Saudi grew by 17% in one year.

Bhutan

India will supply 5,000 MT/year of urea, NPK, SSP, MOP, and borax at subsidized rates to Bhutan.

Sri Lanka

FAGMIL (India) proposes a $30 million investment in a joint venture with Lanka Phosphate Ltd. to build an SSP plant.

Nepal

A 2022 agreement allows India to supply Nepal with urea and DAP based on their agricultural needs.

Developed India Vision: VBSY and Drone Initiatives

Launched by PM Narendra Modi in Nov 2023, the Viksit Bharat Sankalp Yatra (VBSY) showcases modern farming techniques like drone spraying of nano fertilizers.

Example: Namo Drone Didi

• Targets 15,000 women in SHGs with agri-drones between 2023–26

• Drones reduce labor, increase efficiency, and cut costs

• Connected to PMKSKs for outreach and delivery

Conclusion

India’s fertilizer strategy for 2025 focuses on balanced nutrient use, sustainability, and innovation. The government is investing in domestic production, encouraging nano and neem-based fertilizers, and forming global partnerships for long-term supply.

Through advanced monitoring systems, targeted subsidies, and drone technologies, the strategy aims to empower farmers, protect soil and water resources, and reduce import dependency. This approach will ensure that India’s agricultural sector remains strong, self-reliant, and capable of meeting the nation’s food and economic needs in the Amrit Kaal.

Read Also :- Digital Agriculture Mission