India won’t need imported urea by 2025, says Centre

India, the world’s largest buyer of urea and di-ammonium phosphate, has been hit by a sharp rise in global fertiliser prices due to supply disruptions.

India’s long-time dependence on imports of urea, a key fertiliser on which the government spends significant foreign exchange, is likely to end by 2024-25, as the country is on course to replacing the nutrient sourced from overseas with locally developed nano urea, Union fertiliser minister Mansukh Mandaviya said on Tuesday.

(REUTERS)

The government is expected to save ₹40,000 crore annually and with sufficient output of indigenously developed nano urea, a more efficient form of the crop nutrient, urea “may not need to be imported beyond end-2025”, the minister said in a briefing.

India, the world’s largest buyer of urea and di-ammonium phosphate, has been hit by a sharp rise in global fertiliser prices due to supply disruptions. Costlier raw materials, higher freight charges as well as tighter coal and natural gas supplies due to the Ukraine war are likely to keep fertiliser prices elevated this year.

“Domestic output of conventional urea and indigenously developed nano urea will replace the entire quantity that is imported,” Mandaviya said.

According to the fertiliser ministry’s calculations, domestically produced nano urea, whose patent is held by the fertiliser cooperative IFFCO, will replace approximately 20 million tonne of conventional urea India imports each year.

Eight nano urea plants will start producing by November 2025, located in various states, including Karnataka, Uttar Pradesh and Assam.

“By 2025, through eight urea plants, we will produce 44 crore (440 million) nano urea bottles per annum which will be equivalent to 200 lakh metric tonne (20 million tonne) of conventional urea,” the minister said.

The Russia-Ukraine conflict has heightened India’s search for reliable import of fertilisers, as prices have hit multi-year highs. India depends heavily on imports for fertilisers needed for food security. The end of import dependency on urea will also help lower the federal fertiliser subsidy bill. India is expected to spend nearly ₹70,000 crore on urea subsidy this year.

Nano urea is a locally developed highly efficient form of the crop nutrient which fulfils nitrogen requirement in crops. One 500ml bottle of the nano variant is equivalent to one whole bag of conventional urea.

India commenced production of nano urea, after all regulatory approvals, in February 2024. To boost the indigenous production of nano urea, two central public sector undertakings – National Fertilisers Limited and Rashtriya Chemicals and Fertilisers Ltd – have signed non-disclosure agreements and memoranda of understanding with IFFCO to transfer the technology of nano urea. IFFCO is the country’s largest crop nutrient cooperative.