India’s fertiliser sector has evolved into a system highly dependent on imports. In 2025-26, the country’s imports of fertiliser inputs and products were valued at about $27.2 billion. The projected figures underscore the staggering volumes of fertiliser required for sustaining the agricultural productivity necessary to feed the nation’s burgeoning population. With it, the road ahead for India’s agricultural framework becomes increasingly precarious due to its reliance on foreign fertiliser products. This dependency is shaped by various multifaceted factors, ranging from geopolitical issues to supply chain disruptions that have materialised from recent global conflicts.
One of the pivotal factors exacerbating this reliance is the ongoing geopolitical tensions, notably the conflict in West Asia. The region is significant in terms of both energy and agricultural inputs; disruptions here can greatly affect the global fertiliser market. The fallout from the Russia-Ukraine war has led to significant restrictions in the availability and transport of key fertiliser ingredients, such as potash and ammonia. These events have forced India to reassess its sourcing strategies and encouraged further imports to meet the rising demand.
The implications of this dependence on imported fertiliser extend beyond mere supply challenges. With the fluctuating prices of globally sourced fertilisers, farmers in India face increased operational costs that can ultimately threaten food security. The economic stability of the nation is at stake as any market volatility can lead to substantial ramifications on agricultural output and farmers’ livelihoods. It is imperative to consider both short and long-term strategies to mitigate this reliance on imports, whether through domestic production initiatives or the strategic diversification of supply sources.
As the government promotes sustainable farming practices, the continued subsidies for conventional fertilisers create a conflicting situation. On one hand, Prime Minister Narendra Modi wants Indian farmers to cut consumption of chemical fertilisers by 25-50 per cent, in order to conserve precious foreign exchange as well as protect the long-term fertility of Indian soils. However, the governments in Uttar Pradesh, Madhya Pradesh and Maharashtra are doing the opposite. All three — many more may follow — have decreed that manufacturers and suppliers of subsidised fertilisers such as urea and di-ammonium phosphate (DAP) cannot sell nutrient products where no government subsidy or price controls are in place. In other words, fertiliser companies can sell only those products whose usage is being discouraged by the Modi government. They have been banned from selling any bio, nano, water-soluble and liquid speciality fertilisers or micronutrients and bio-stimulants.
While these subsidies provide short-term yield increases, they may lead to long-term soil degradation and nutrient imbalance. It is crucial to reconcile subsidy incentives with sustainability to avert erosion in soil health and declining agricultural productivity.
Incorporating innovative practices, such as promoting organic and bio-fertilizers, could foster agricultural resilience. By aligning policy reforms to focus on sustainability and market-driven fertiliser prices, India could empower farmers and enhance ecological health while boosting productivity.























