India’s agricultural success has long been supported by an extensive fertilizer ecosystem — but beneath this strength lies a structural vulnerability: a high dependence on imports. Today, global geopolitical disruptions have exposed this fragility, triggering supply shortages, price spikes, and policy stress. Yet, within this crisis lies a powerful opportunity — a decisive push toward “Make in India” fertilizers and a long-overdue reset in crop nutrition practices.

India imports a substantial share of its fertilizer requirements, particularly in key bulk categories. Roughly 90–100 per cent of potash (MOP) is imported, as India lacks domestic reserves. For phosphatic fertilizers, import dependence remains high, with nearly 85–90 per cent of rock phosphate and phosphoric acid sourced from countries such as Morocco, Jordan, and Saudi Arabia. Even urea, where India has expanded domestic capacity, still sees 10–15 per cent dependence on imports to meet seasonal demand. Complex fertilizers and intermediates further deepen this reliance.

Historically, India has diversified its sourcing across regions — Russia and Belarus for potash, West Asia and North Africa for phosphates, and China for specialty fertilizers and intermediates. However, recent geopolitical developments have disrupted this balance. The Russia-Ukraine conflict has strained supplies of potash and ammonia derivatives, while sanctions and payment constraints have complicated trade flows. More critically, China — one of the world’s largest exporters of fertilizers and fertilizer intermediates - has imposed export restrictions to secure domestic supply. This has sharply curtailed global availability, particularly for water-soluble fertilizers and specialty nutrients, sending prices soaring.

Subsidy Bill under pressure

The result is a perfect storm: reduced availability, increased global competition for limited supplies, and sharply elevated costs. India’s fertilizer subsidy bill is already under immense pressure, and continued dependence on imports risks making it fiscally unsustainable. Overuse of subsidized bulk fertilizers such as urea and DAP has further aggravated the problem, leading to soil degradation and nutrient imbalance.

This moment, however, presents a golden opportunity for India to pivot decisively toward self-reliance.

A key part of this transition lies in rethinking crop nutrition. India’s fertilizer consumption has long been skewed toward nitrogen-heavy usage, often at the expense of balanced nutrition. Here, micronutrients and specialty fertilizers offer a viable and necessary alternative. Products containing zinc, boron, iron, and other trace elements can significantly enhance nutrient efficiency, improve crop yields, and reduce the excessive application of bulk fertilizers.

Beyond formulations

Moreover, high-density, water-soluble NPK fertilizers manufactured in India present a compelling solution. With China restricting exports of such products, Indian manufacturers, like Aries Agro Limited, have stepped up with cost-effective alternatives. These HD formulations, applied at one-fifth the dosage of conventional fertilizers, not only reduce input costs but also improve nutrient uptake efficiency. They represent a scalable, domestic solution to both supply constraints and agronomic inefficiencies.

Equally promising are customised, crop-specific water-soluble mixtures that combine NPK with secondary and micronutrients. These “3-in-1” products simplify application for farmers, eliminating the need to source multiple inputs. They reduce labour and logistics costs while ensuring balanced nutrition tailored to specific crops and geographies. This is not just import substitution - it is innovation aligned with India’s agronomic realities.

Beyond formulations, India has a significant opportunity to localise the production of key imported inputs such as boric acid, potassium nitrate, potassium sulphate, calcium nitrate, granular fertilizers, and chelated micronutrients. Building domestic capacity in these segments would ensure supply security, stabilize prices, and reduce exposure to global shocks.

Positioning India as a reliable supplier

Policy support will be crucial to unlocking this potential. A uniform GST rate of 5 per cent across all FCO-notified fertilizers, especially those manufactured domestically, would create a level playing field and incentivise production. Regulatory frameworks must remain fair, transparent, and predictable to encourage investment in manufacturing and innovation.

At the same time, fertilizers that are manufactured in India without subsidised raw materials and are not in domestic shortage should be allowed for export. This would position India as a reliable global supplier, transforming the country from a net importer to a competitive exporter in select segments. The vision of India as a “fertilizer factory for the world” is both achievable and strategically sound.

Cost pressures, however, extend beyond raw materials. Packaging inputs such as plastics and paper are under strain due to rising crude oil prices. Rational pricing by petrochemical suppliers will be essential to prevent cost escalation across the value chain. Additionally, spiraling freight costs are adding to the burden. Temporary excise duty reductions on fuel could help offset logistics shocks and stabilize prices for both manufacturers and farmers.

Crisis tops supply challenges

An often-overlooked advantage lies with manufacturers who have invested in green and alternative energy sources. These off-grid energy systems reduce dependence on volatile fossil fuel markets and can help cushion production costs. In the current environment, such investments are not just environmentally responsible - they are economically strategic. Manufacturers must leverage this advantage to moderate price increases and support farmers during this period of stress.

Ultimately, this crisis is more than a supply challenge - it is a call for systemic change. Responsible business practices, farmer education, and policy alignment must converge to create a resilient fertilizer ecosystem. Farmers must be guided toward balanced nutrition strategies that protect soil health while optimizing yields. Industry must invest in domestic capacity and innovation. Government must enable, not constrain, this transformation.

“Make in India” has never been more relevant. In fertilizers, it is not just a slogan - it is the foundation of India’s food security, economic resilience, and agricultural sustainability for decades to come.

(The author is Chairman & Managing Director, Aries Agro Limited)

Published on May 10, 2026