India's Fertiliser Import Challenges and Transition to Biofertilisers

The recent closure of the Hormuz Strait has highlighted India's dependency on fertiliser imports, raising concerns about the country's agricultural sustainability. As India prepares for the kharif sowing season, the issue has gained urgency, especially since Rabobank ranked India among the most vulnerable nations to prolonged Hormuz closures.

Current Fertiliser Dependency

• India lacks strategic reserves for nitrogen fertiliser, unlike crude oil.
• About 60% of urea imports are sourced from Oman, Saudi Arabia, and Qatar, with additional contributions from the UAE.
• India’s fertiliser subsidy was estimated at ₹1.86 lakh crore in 2025-26, forming over 40% of the government's subsidy spending.
• The closure of Hormuz threatens to disrupt supply chains and increase shipping costs, exacerbating the subsidy burden.

Impact on Soil and Agriculture

• Decades of chemical fertiliser use have depleted soil nutrients, causing a dependency on imports.
• The country's NPK application ratio has deteriorated to 10.9:4.4:1, far from the ideal 4:2:1.
• Fertiliser efficiency is low, with substantial losses due to volatilisation, denitrification, and leaching.
• ICRIER estimates a low return on fertiliser subsidy spending compared to agricultural R&D.

Potential of Biofertilisers

• Biofertilisers, made from living microbes, are cost-effective and domestically producible.
• Sikkim has successfully implemented 100% organic farming over 76,000 hectares.
• Andhra Pradesh’s natural farming program has reached over 1 million farmers, reducing input costs.
• Despite growth since 2015, the biofertiliser market is fragmented with quality control issues.

Proposed Measures for Biofertiliser Promotion

• Inclusion in Subsidy Framework: Consideration for including biofertilisers in the nutrient-based subsidy to reduce import dependence and improve soil health.
• Quality Control: Establishment of 10,000 Bio-Input Resource Centres (BRCs) requiring stringent quality checks.
• Faster Approvals: Accelerate approval processes for new microbial strains to encourage innovation and maintain product quality.

The shift to biofertilisers and natural farming will be gradual, serving as a supplementary system rather than a complete replacement for chemical fertilisers. This transition is crucial for reducing import bills, alleviating soil stress, and lowering costs for farmers, particularly in the light of challenges like the Hormuz Strait closure.