Beyond imports and subsidies: Reckoning with fertilisers, driven by domestic innovation

Shifting Towards Self-Reliance in Fertilizers

India's agriculture sector, which supports nearly half the nation's workforce, has long grappled with fertilizer supply chains vulnerable to global shocks. Recent policy moves signal a bold pivot from heavy reliance on imports and subsidies to fostering homegrown solutions. The 2026-27 Union Budget underscores this by prioritizing domestic production capacity and innovative tools to empower farmers directly. With domestic output hitting 524.62 lakh tonnes in 2025, covering about 73% of needs, the country is closing the gap steadily. Urea production and sales have seen steady rises, even as imports spiked to buffer peak demand periods. Yet, the real game-changer lies in blending technology with traditional farming practices to optimize usage and protect soil health amid climate uncertainties.

This strategy addresses not just quantity but quality of nutrient application, ensuring smallholder farmers—who dominate Indian agriculture—can boost yields without depleting resources. Government initiatives like the New Investment Policy and Nutrient Based Subsidy scheme have spurred new urea plants, adding millions of tonnes of efficient capacity. Private players have stepped up too, with energy-efficient units in states like West Bengal and Rajasthan now operational. These steps aim to shield farmers from price volatility while building a resilient supply base tailored to local crops and soils.

Innovation at the Heart of Agricultural Transformation

Domestic innovation is emerging as the cornerstone of this fertilizer reckoning. Take Bharat-VISTAAR, a multilingual AI platform launched in the budget framework. It integrates data from AgriStack and agricultural research councils to deliver personalized advice on fertilizer choices, dosages, and timing. Farmers get science-backed recommendations via simple interfaces, cutting waste and enhancing efficiency even when supplies are stable. This tech-driven approach tackles a key issue: inefficient nutrient use that harms soil over time.

Beyond AI, there's a surge in bio-fertilizers, nano variants, and slow-release formulas to promote balanced nutrition. Schemes like PM-PRANAM reward states for adopting these alternatives, channeling subsidy savings into training and awareness. Collaborations between Indian firms and global partners are yielding crop-specific products suited to regional needs. The budget allocates hefty sums—over ₹1.71 trillion—for affordable supplies, but pairs it with capacity-building to diversify production, especially in phosphatic fertilizers where imports still fill 30% of demand. "By harnessing AI and local R&D, we're not just feeding our soils but securing our farmers' future against global uncertainties—true self-reliance starts in the fields," says Dr. Rajesh Kumar, a leading agronomist. |quote| These efforts promise to make farming smarter and more sustainable.

Challenges persist, like distribution bottlenecks where record availability hasn't always reached farmers promptly, leading to queues despite ample stocks. Pushing for demand-based systems, better storage at local levels, and transparent data could bridge this last mile.

Navigating Challenges and Charting the Path Ahead

While progress is evident, hurdles remain in scaling phosphatic capacity due to raw material issues and regulatory tweaks needed for gypsum handling. Budget proposals seek tax incentives, duty adjustments, and grants to spur greenfield projects, aiming to match urea gains across nutrients. Geopolitical tensions and supply disruptions from key exporters add urgency, prompting a dual shield of subsidies and self-production. The fertilizer market itself is poised for growth, reflecting rising demand as agriculture modernizes.

Implementation will be key: converting policy into on-ground impact through strengthened cooperatives, farmer groups, and anti-profiteering measures. Public data on distribution and mandatory local stocks could end the irony of surplus stocks and farmer waits. As India eyes long-term food security, this innovation-led model positions agriculture as a pillar of national strength, blending tradition with cutting-edge tools for enduring prosperity.

In summary, India's fertilizer strategy is evolving from import crutches and blanket subsidies to a robust ecosystem powered by domestic innovation, AI guidance, and sustainable practices—ensuring resilient farming for generations ahead.