**Executive Summary**
This report details the Government of India’s strategy to mitigate geopolitical risks and reduce urea dependence by securing long-term fertilizer raw material supplies and promoting balanced fertilization. Key measures include the facilitation of Long-Term Agreements (LTAs) with resource-rich nations and the expansion of domestic production capacity under the Nutrient-Based Subsidy (NBS) Scheme. The document emphasizes Indian Council of Agricultural Research (ICAR) recommendations for soil health, with active implementation of these measures as of March 27, 2026.
**Key Points / Main Content**
**Strategic Supply Management**
* **Import Dependency:** India currently relies on imports for a significant share of raw materials, including 100% of Muriate of Potash, 86% of Rock Phosphate, and 75% of Ammonia for complex fertilizers.
* **Long-Term Agreements (LTAs):** To ensure stability, the Department of Fertilizers has secured LTAs for Rock Phosphate, Phosphoric Acid, and Ammonia with countries including Jordan, Morocco, Togo, Mauritania, Tunisia, Senegal, Saudi Arabia, Oman, Japan, and Malaysia.
* **LTA Durations:** Agreements range from yearly renewals to 34-year terms (e.g., IFFCO’s Phosphoric Acid deal in Senegal).
**Domestic Capacity Expansion**
* **NBS Scheme Growth:** Fertilizer companies are establishing new DAP/NPK plants with an annual capacity of 59.65 LMT and phosphoric/sulphuric acid plants with a capacity of 44.21 LMT.
* **Green Initiatives:** Under the National Green Hydrogen Mission, a provision has been made for the procurement of 7.24 LMT of Green Ammonia to support the fertilizer sector.
**Advanced Agricultural Practices**
* **Balanced Fertilization:** ICAR recommends soil test-based application and the use of NPK fertilizers to reduce excessive reliance on nitrogen.
* **Integrated Nutrient Management (INM):** Promotion of combined inorganic and organic sources, such as manure, compost, biofertilizers, and crop residue recycling.
* **Efficiency Measures:** Use of neem-coated urea, slow-release fertilizers, and nitrification inhibitors to minimize nutrient loss and improve efficiency.
**Impact Analysis**
**Fertilizer Companies (e.g., PPL, GSFC, IFFCO, RCF)**
**Impact**
Companies benefit from secured, long-term access to essential raw materials and intermediates, reducing their vulnerability to global market fluctuations and geopolitical disruptions.
**Action Required**
Must fulfill commitments to establish new production plants (DAP/NPK/Acids) and manage the logistics of the quantities specified in the LTAs.
**Farmers**
**Impact**
Farmers are assured of a stable fertilizer supply and benefit from improved soil health and reduced costs through more efficient nutrient application.
**Action Required**
Adopt soil test-based fertilization practices, participate in ICAR training and demonstrations, and transition toward Integrated Nutrient Management.
**Department of Fertilizers / Government of India**
**Impact**
The government reduces the national risk of supply chain disruptions while promoting sustainable agricultural growth and domestic self-reliance.
**Action Required**
Continue facilitating MoUs with international partners and oversee the implementation of the National Green Hydrogen Mission and NBS Scheme capacity expansions.
Key Entities Referenced
Nutrient-Based Subsidy (NBS) Scheme: A government scheme used to encourage domestic capacity expansion of fertilizers and achieve import substitution.
Department of Fertilizers: The primary department responsible for facilitating Long-Term Agreements (LTAs) and MoUs with resource-rich nations to secure fertilizer raw materials.
National Green Hydrogen Mission: A strategic initiative under which provisions have been made for the procurement of Green Ammonia for the fertilizer sector.
Indian Council of Agricultural Research (ICAR): The scientific body that recommends soil test-based balanced fertilization and leads capacity building for advanced nutrient practices.
Integrated Nutrient Management (INM): A promoted practice involving the combined use of inorganic and organic fertilizers to maintain soil health and reduce chemical dependency.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
Geopolitical Risks Addressed as India Locks in
Long-Term Fertilizer Raw Material Supplies
Reducing Urea Dependence: ICAR Highlights Balanced
Fertilization and Advanced Nutrient Practices
Posted On: 27 MAR 2026 2:38PM by PIB Delhi
The Government of India has reiterated its commitment to ensuring the availability of fertilizers while
addressing challenges of import dependence and soil nutrient imbalance. In a reply to a Starred Question
in the Lok Sabha today, Shri Jagat Prakash Nadda, Minister for Chemicals & Fertilizers and Health &
Family Welfare, provided details of ongoing measures.
Securing Fertilizer Raw Materials through Strategic Partnerships India continues to rely significantly on
imports for key fertilizer raw materials and intermediates due to limited domestic reserves . To mitigate
geopolitical disruptions, the Department of Fertilizers has facilitated several Long-Term Agreements
(LTAs) and Memoranda of Understanding (MoUs) with resource-rich nations to ensure a stable supply for
domestic production. Details of LTAs is attached as Annexure-I.Estimated Import Share of Key Raw Materials (2024-25):
Sl. No. Raw material/ Intermediates Estimated share of import (%)
1. Rock phosphate 86.0
2. Sulphur 52.0
3. Natural Gas for Urea Sector 78.0
4. Ammonia for Complex Fertilisers 75.0
5. Phosphoric Acid 52.0
6. Muriate of Potash 100.0
(Source: Fertilizer Association of India)
To achieve domestic substitution, the Government is encouraging capacity expansion under the Nutrient-
Based Subsidy (NBS) Scheme . Fertilizer companies are currently establishing new DAP/NPK plants with
a combined annual capacity of 59.65 LMT, alongside phosphoric and sulphuric acid plants with a capacity
of 44.21 LMT . Furthermore, under the National Green Hydrogen Mission, a provision has been made for
the procurement of 7.24 LMT of Green Ammonia for the fertilizer sector.
Indian Council of Agricultural Research (ICAR) recommends soil test–based balanced fertilization,
ensuring that nutrients are applied according to the actual needs of the crops and supplementing soil
nutrients. This is complemented by the balanced application of NPK fertilizers rather than excessive
reliance on nitrogen alone. Integrated Nutrient Management (INM) is promoted through the combined use
of inorganic fertilizers and organic sources such as manure, compost, green manure, biofertilizers, and
crop residue recycling, which helps maintain soil health and reduce chemical fertilizer dependency.Efficient fertilizer use is encouraged through practices such as split application of nitrogen, proper
placement of fertilizers, and the use of slow-release fertilizers, neem-coated urea, and nitrification
inhibitors to minimize nutrient losses. The use of biofertilizers and adoption of organic farming practices
further support sustainable nutrient supply and reduce urea consumption. In addition, proper soil and
water management practices enhance nutrient use efficiency and prevent losses through leaching and
runoff.
ICAR also engaged in capacity building through farmer training, demonstrations, and awareness programs
that plays an important role in promoting these practices. Together, these measures help reduce excessive
urea consumption, ensure balanced nutrient application, and improve soil health while protecting the
environment.
Annexure-I
Rock Phosphate:
Jordan
Indian Counterpart Product Annual Duration (Years)
Company company Quantity (MT)
Ostwal JPMC Rock 5,00,000 10 yrs
Phosphate
May 2022 to April 2032
Morocco
Indian Counterpart Product Annual Duration (Years)
Company company Quantity (MT)
PPL OCP Rock 16,00,000 to 10yrs
Phosphate 18,00,000
(31-Dec-23 to
30-Nov-33)
Togo
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
FACT SNPT Rock 2,40,000 (non- 3 yrs
Phosphate binding)
10.02.2025 to
09.01.2028
MauritaniaIndian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
RCF M/s. Atlantic Rock 1,50,000 (non- 3 yrs
Minerals Phosphate binding)
2025 to 2028
SARL
2. Phosphoric Acid:
Morocco
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
PPL OCP Phosphoric 3,00,000 to 3,50,000 Yearly
acid
(Quarterly renewal
Agreement)
Indorama OCP Phosphoric 1,20,000 MT of Ongoing, signed on
Acid P2O5 01.06.2021
Total: 4,20,000 to 4,70,000
Tunisia
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
GSFC TIFERT Phosphoric 1,80,000 30yrs
Acid
(21/08/2006 to
21/08/2036)
Senegal
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
IFFCO ICS Phosphoric 5,50,000 34 years
Acid
Started: 17-May-99
3. Ammonia
Saudi ArabiaIndian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
CIL MA’ADEN Ammonia 6,00,000 (+/-10%) 3yrs
(01/01/2024 to
31/12/2026)
Oman
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
PPL East West Ammonia 3,50,000 3 years
General
01-Aug-24 to 31-Jul-27
Trading, Dubai
Japan
Indian Company Counterpart Product Annual Quantity (MT) Duration (Years)
company
Indorama ITOCHU Ammonia 15,000 - 60,000 MT 1 yr
(01.01.25 to 31.12.25)
Malaysia
Indian Company Counterpart Product Annual Quantity Duration (Years)
company (MT)
PPL Itochu Ammonia 50,000 to 90,000 1 Year
Corporation (01-01-25 to 31-12-25)
'पैनक करने क आवश्यकता नह ह. हमार पास पयाप्त भंडारण ह. कसान को सही समय पर जतनी
खाद चाहए, मलेगी.'
लोकसभा म प्रश्नकाल के दौरान उवरक क उपलब्धता पर मा. रसायन एव ं उवरक मंी ी जेपी ना जी
का जवाब#BudgetSession #FertilizerStock@JPNadda @PIB_India pic.twitter.com/T
NwLO3FLvK
— Department of Fertilizers (@fertmin_india) March 27, 2026******
Neeraj Kumar Bhatt/ Amit Kumar/ Shatrughna Prasad
cmc.fertilizers[at]gmail[dot]com
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