A report by the Parliamentary Standing Committee on Chemicals and Fertilizers highlights India's progress toward self-sufficiency while simultaneously raising concerns over persistent malpractices and import dependence.
Concern / Observation | Recommendation
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Domestic Production and Capacity Augmentation | |
Present Status: India’s fertilizer consumption reached an all time high of 708 LMT in 2024–25, while domestic production remained insufficient at 307 LMT for Urea and 211.21 LMT for P and K increasing vulnerability to geopolitical shocks. | Constitute a high-level Task Force to prepare a time-bound strategy to boost Urea production (via NIP-2012, NUP-2015) and expand P&K capacity through fiscal and tax incentives. |
Aging infrastructure: 27/33 Urea plants are 25+ years old, 7 plants 50+ years old leading to high Operation and Maintenance costs | Establish a special task force for modernization/upgradation using state-of-the-art energy-efficient technology |
Reducing Import Dependency and Securing Raw Materials | |
India has 95% Phosphate and 100% Potash import dependency. | Secure long-term agreements and global joint ventures with resource-rich countries |
Dependence on foreign licensors (Netherlands, US, Italy, Japan) for technology and plant licensing. | Develop indigenous fertilizer process technology through a high-power task force backed by strong R&D funding. |
Low-grade phosphate ores and deep-seated potash deposits | Take concrete steps for domestic exploration and mining of raw materials, leveraging “Critical & Strategic Minerals” status under MMDR Act, 2023. |
Promoting Alternatives and Curbing Malpractices | |
Insufficient drones for Nano fertilizer application | Introduce a PLI Scheme for drones to support large-scale Nano fertilizer usage. |
Black marketing/diversion persists despite Aadhaar authentication being mandatory | Introduce stringent enforcement protocols establish a nationwide lab network and grievance redressal system. |
Imbalanced use of chemical fertilizers leading to soil degradation and nutrient deficiency. | Promote balanced fertilization, crop rotation, biotic inputs, and organic/natural farming |