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India’s import and consumption of urea, a key crop nutrient, has declined for the first time in decades due to increased domestic production of nanourea, a liquid form of the chemical, as well as a move toward eco-friendly alternatives by of the farmers. , according to official data.
Read here: Drone spraying of nanourea useful for farmers: agricultural officials
Total urea imports, which are regulated by the government, stood at 6.4 million tonnes in the first 10 months of the current fiscal year, compared with 7.3 million tonnes in the corresponding period a year ago, a 12% drop. Imports peaked at 9.8 million tonnes during 2020-21.
Domestic urea consumption through January 31 of the year to March also fell 0.3% to 3.17 million tonnes from 3.18 million tonnes a year ago. However, sales of all fertilizers together increased by 2.9% to 53.9 million from 52.4 million tons, mainly sales of complex fertilizers and the diammonium phosphate (DAP) group increased.
The government has set 2025-26 as the deadline to achieve self-sufficiency in urea by increasing local production of nanourea. The liquid form is said to be more effective than conventional urea. Manufacturers sell crop nutrients at a discount to millions of farmers, who are then reimbursed by the Centre.
As part of a broader policy push to limit fertilizer subsidies and promote natural and organic farming, the government has been implementing PM-Pranam, a scheme announced by Finance Minister Nirmala Sitharaman in her budget speech 2023-24.
Food and fertilizer subsidies accounted for about one-eighth of India’s total budget, worth almost $39 crore in 2022-23. India, the world’s third-largest buyer of fertilizers, relies on imports to meet domestic demand.
Under PM-Pranam, 50% of the fertilizer subsidy saved by a state is returned to it as a subsidy, which the states can use for any use, such as building infrastructure, an official said. “In other words, if a state saves $3,000 crores, then it will come back $1,500 crore,” he said, asking not to be identified.
According to official data, the consumption of conventional urea has decreased in 344 districts of the country, which has contributed to reducing costly imports. Sales of locally produced nanourea have increased in 74 districts.
Conventional urea consumption in India is estimated to decline by 2.5 million tonnes in 2023-24 due to a rise in demand for nano urea and government efforts to curb the use of agricultural chemicals through natural farming, fertilizer minister Mansukh Mandaviya said last week. The total consumption of urea during the year 2022-23 was almost 35.7 million tonnes.
Read here: Nano urea will be sprayed on fields by drones; you need to register on the portal
The country’s food security is closely linked to the availability of fertilizers, whose prices hit a multi-year high in 2022 due to the Ukraine conflict and the knock-on effects of the pandemic on supply chains.
Government spending on crop nutrient subsidies for 2022-23 jumped to record $2.25 crores. For the current fiscal year, the budgeted fertilizer subsidy is $1.75 lakh crore, which has been increased to $1.89 crore in revised estimates for 2023-24.
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