Empowering Farmers Through Fertiliser Policy

India’s agriculture has long been the backbone of its economy, feeding 1.4 billion people, employing nearly 40% of the workforce, and contributing around 18% to the country's GDP. Behind this vast system lies a humble but powerful input: fertilisers.

For decades, fertiliser policy has been subsidy-driven—keeping prices affordable but creating unintended problems: soil fatigue, overuse of urea, ballooning subsidies, and dangerous import dependence.

Today, with climate stress, global supply shocks, and growing fiscal pressure, India’s fertiliser story must evolve. And this time, it is not just the government’s job. Industry leaders must step forward as partners in national transformation.

Why Fertiliser Policy Matters More Than Ever

Fertiliser touches every farmer, every acre, and every plate of food we consume. However, the design of the fertiliser policy has far-reaching implications that extend beyond just price and supply.

🔹 Economic Impact: India spends Rs. 1,91,836 crore on fertiliser subsidies for the year  2024–25 financial year against the initial allocation of Rs. 1,68,131 crores.

🔹 Environmental Cost: Overuse of urea has depleted soils, reduced organic matter, and contributed to water pollution and greenhouse gas emissions. Globally, rice crops use only 20–50% of the applied nitrogen, with partial factor productivity around 40 kg of grain per kg of N. frontiersin.org.

  • And alarmingly, a 55% share of rice farmers overuse nitrogen, with potential savings of 18 kg N/ha possible without compromising yield, nature.com.

🔹 Farmer Productivity: Imbalanced fertilization can lead to stagnant yields. For instance, India’s average rice yield (4.25 t/ha) is far below China’s (6.9 t/ha), partly due to poor nutrient management.

🔹 Global Dependence: 100% of potash, over 40% of phosphate, and 20% of Urea are imported, exposing India to global supply shocks, as seen during the Russia–Ukraine conflict. Russia and Belarus supply 50% of the Potash requirement.

Clearly, fertilizer policy is not a technical detail—it’s a national strategy.

The Old Model Has Run Out of Steam

Historically, India’s fertilizer policy revolved around three pillars: subsidy, supply, and scale. This approach was effective in an era of scarcity, but it has now reached its limits.

  • The Old Model: Subsidy-heavy, centralized procurement, focus on urea, minimal innovation.
  • The Result: Soil fatigue, high fiscal burden, and farmers trapped in a cycle of low productivity.

What we need now is a new policy vision:

  • Balanced Nutrition: Move beyond Urea dominance. Incentivise NPK blends and micronutrients, and nano Fertilisers.
  • Soil Health First: Link subsidies to soil test-based recommendations.
  • Technology-Led Access: Nano fertilizers, soil health cards, AI-driven crop advisories.
  • Sustainability: Green ammonia, bio-fertilizers, and carbon-efficient production.
  • Farmer Empowerment: Packaging, pricing, and advisory aligned with smallholder realities.

The Industry’s Role: From Supplier to Partner

Fertilizer companies cannot afford to remain passive actors waiting for government decisions. They must become co-creators of policy and farmer solutions. Here’s how industry leaders can step up:

1. Farmer-Centric Innovation

  • Develop granular nano formulations that are easier to apply than liquids.
  • Launch 10–20 kg/acre packs that suit smallholders.
  • Use QR-coded packs for traceability and instant advisory.

2. Education & Trust

  • Invest in field demos showcasing yield improvements from balanced nutrition.
  • Run digital campaigns in regional languages to debunk myths and promote adoption.
  • Partner with Krishi Vigyan Kendras (KVKs), NGOs, and FPOs for credibility.

3. Technology Integration

  • Support apps that allow farmers to scan crops and get instant nutrient advice.
  • Combine fertilizer sales with soil testing services.
  • Use AI to predict demand, optimise supply chains, and reduce the black market.

4. Sustainability and Competitiveness

  • Invest in green hydrogen and green ammonia projects, tapping into India’s renewable potential.
  • Collaborate with international firms to secure raw material supply chains.
  • Explore opportunities in carbon credit markets through sustainable fertilizer practices.

Nano Fertilizers:

 

IFFCO’s Nano Urea and Nano DAP have shown that innovation can break through decades of status quo. Field trials indicate that one bottle of Nano Urea can replace a 45-kg bag of conventional urea, thereby reducing logistics costs, subsidy burden, and environmental damage.

But adoption remains limited because:

  • Farmers find liquid application less convenient than granules.
  • Awareness is low in remote areas.
  • Extension support is inadequate.

The solution: granular nano formulations in small packs with local-language guidance and app-based guidance—industry lead training. With the right push, adoption could take off within a few seasons.

Global Lessons, Local Action

India is not alone in this challenge. Other nations have shown the way:

  • China: Introduced a “Zero Growth in Fertilizer Use” policy in 2015, promoting balanced nutrition and precision application. Result: Fertilizer use stabilized, yields improved, and farmer incomes rose.
  • Brazil: Focused on nutrient use efficiency by linking fertilizer subsidies to soil testing. This reduced wastage and boosted soybean productivity.
  • Africa: Public-private partnerships in countries like Kenya have improved access to customized fertilizers through FPOs and digital platforms.

India can adapt these lessons—especially the idea of linking subsidies to soil test-based recommendations.

The Way Forward

India’s fertiliser policy must shift from subsidy-driven to efficiency-driven. Industry must lead in product innovation, farmer training, and last-mile delivery. Farmers must be empowered with not just inputs, but knowledge.

The Green Revolution of the 1960s was built on seed and irrigation. The next revolution will be powered by smarter fertiliser use, sustainable technologies, and farmer trust.

The question is: will fertiliser companies stay suppliers—or will they become true partners in building India’s agricultural future?

Conclusion: A Shared Responsibility

India’s fertilizer challenge is not the government’s problem alone—it’s a shared responsibility. Policymakers, industry leaders, researchers, and farmers must collaborate to create a future where every acre is productive, every farmer is empowered, and every rupee spent on subsidies generates lasting value.

What do you think: Should fertiliser companies play a bigger role in farmer education and soil health—or should this remain the government’s responsibility?

 

Comments

Post a Comment

Popular posts from this blog

Image
  Toxic Management: A Boardroom Blind Spot That Threatens Enterprise Value Boardrooms meticulously dissect financial reports, strategy blueprints, and market risks. Yet, a more insidious threat often goes unnoticed: toxic management . This pervasive leadership style quietly erodes enterprise value, damages culture, and drives away top talent, posing a silent but significant danger to organizational health. Toxic management is not simply “tough” leadership. It’s characterized by behaviours that create fear, distrust, and disengagement, including micromanagement, poor communication, emotional neglect, blame shifting, favouritism, public humiliation, and the theft of credit for others’ work. These are not isolated personality flaws. They are systemic leadership failures with profound implications for organizational sustainability. For boards, the danger lies in how well toxic managers often mask their behaviour behind impress...
Read more
  “Nano in Indian Agriculture: Big Promise, Small Particles, Real Challenges” With increasing population, retreating arable land, and global warming, Indian agriculture is faced with the daunting task of yielding more with less. The traditional methods of increasing crop yields are increasingly becoming unsustainable. Nanotechnology is now emerging as transformative force in agriculture, one that promises greater productivity, efficient use of inputs, and lower environmental footprint. From nano-fertilizers and nano-pesticides to intelligent delivery systems, nanotech is already finding its place in Indian farms. But like with every revolutionising innovation, the path from promise to performance is anything but smoothed. This article follows the new nanotech products in Indian agriculture, their potential, major challenges, and the pivotal role of the agri inputs industry in spreading this technology. What is Nanotechnology in Agriculture? Nanotechnology is the creation,...
Read more
Image
      “Boards Beyond Governance: Owning Brand and Marketing Strategy”   Traditionally, branding and marketing were rarely discussed in the boardrooms.  Directors focused on compliance, financials, and risk, often seeing Branding as the purely marketing team’s domain. But the world has changed. Today, Brand isn't just a logo, tagline, or ad campaign. It's the aggregate of all impressions about an organization by customers, employees, investors, regulators, partners, and communities. It has a direct impact on reputation, valuation, and resilience. Why Should Boards Care? ·        Brand = Risk & Opportunity : A strong brand is a valuable asset that can command pricing power, foster customer loyalty, and inspire investor confidence. A damaged brand can tank shareholder value overnight. Think data breaches, ESG (environmental, social, and governance) failures, or socia...
Read more