Strategy on Fertilizers
Feb. 25, 2025

Why in news?

India aims to cap or reduce the consumption of urea, di-ammonium phosphate (DAP) and muriate of potash (MOP) due to their heavy reliance on imports.

What’s in today’s article?

  • India’s Dependence on Imported Fertilisers
  • Need to Limit the Usage of Urea, MOP, and DAP
  • An Effective Replacement for DAP: Ammonium Phosphate Sulphate (APS)
  • The Road Ahead

India’s Dependence on Imported Fertilisers

  • MOP: Fully imported from Canada, Russia, Jordan, Israel, Turkmenistan, and Belarus due to the lack of domestic potash reserves.
  • Urea: Over 85% of demand met domestically, but production depends on imported liquefied natural gas (LNG) from Qatar, the US, UAE, and Angola.
  • DAP: imported in the form of
    • finished fertiliser (mainly from Saudi Arabia, China, Morocco, Russia and Jordan) as well as
    • raw material (rock phosphate from Jordan, Morocco, Togo, Egypt and Algeria; sulphur from UAE, Qatar and Oman) and
    • intermediate chemicals (phosphoric acid from Jordan, Morocco, Senegal and Tunisia; ammonia from Saudi Arabia, Qatar, Oman and Indonesia).

Need to Limit the Usage of Urea, MOP, and DAP

  • High Import Dependence and Currency Depreciation
    • India heavily relies on imports for MOP and DAP, while urea production depends on imported LNG.
    • The rupee’s depreciation further increases the cost of these fertilisers, putting pressure on foreign exchange reserves.
  • Imbalance in Nutrient Application
    • Urea (46% nitrogen), MOP (60% potash), and DAP (46% phosphorus + 18% nitrogen) are high-analysis fertilisers.
    • Most crops do not require such high concentrations of individual nutrients, leading to inefficient nutrient absorption and wastage.
  • Need for Balanced Fertilisation
    • Crops require a mix of macronutrients (N, P, K), secondary nutrients (sulphur, calcium, magnesium), and micronutrients (zinc, iron, copper, boron, manganese, molybdenum).
    • Excessive use of high-analysis fertilisers disrupts soil health and reduces long-term productivity.
  • Efficient Use of Resources and Foreign Exchange
    • Reducing dependence on high-analysis fertilisers ensures better utilisation of imported raw materials.
    • Balanced fertilisation promotes sustainable farming, enhances crop yields, and reduces unnecessary expenditure on imports.

An Effective Replacement for DAP: Ammonium Phosphate Sulphate (APS)

  • APS (20:20:0:13) contains 20% nitrogen (N), 20% phosphorus (P), and 13% sulphur (S) but no potassium (K).
  • Despite having lower phosphorus content than DAP (which has 46% P), APS is an effective alternative due to its balanced nutrient composition.
  • APS manufacturing reduces dependence on costly phosphoric acid, making fertiliser production more economical and resource-efficient.
  • The inclusion of sulphur improves soil health and enhances crop yield, making APS a viable and sustainable alternative to DAP.
  • APS is ideal for oilseeds, pulses, maize, cotton, onion, and chilli, which require high sulphur content.
    • DAP should be reserved for wheat, rice, and sugarcane, where it is most essential.
  • Also, companies benefit by selling twice the number of APS bags from the same phosphoric acid quantity, making APS a more financially viable option.

The Road Ahead

  • Surge in NPKS Complex Fertiliser Sales
    • NPKS fertiliser sales in 2024-25 are projected to reach 14 mt, nearly double the 7.3 mt in 2013-14.
    • The rapid growth is largely driven by 20:20:0:13, which is steadily replacing DAP.
  • Expanding the Push for Balanced Fertilisation
    • Other complex fertilisers like 10:26:26:0, 12:32:16:0, 15:15:15:0, and 14:35:14:0 need stronger marketing efforts.
    • Direct application of MOP should be minimised, with its usage integrated into balanced complex fertilisers.
  • Reducing Dependence on High-Analysis Fertilisers
    • The long-term goal is to limit or reduce the use of urea, DAP, and MOP, ensuring efficient nutrient application.
    • Farmers should be encouraged to maximize nutrient use efficiency, leading to better crop productivity while conserving foreign exchange.

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