PM's push for less use of chemical fertilisers may face pricing hurdle

Prime Minister Narendra Modi’s clarion call to lower the use of chemical fertilisers in the light of West Asia crisis though welcome in ‘principle’ but might find few takers unless prices of urea, DAP and others are not artificially kept low and are more aligned to the real market, senior industry officials and experts said.

 

“When you are selling urea at less than $65 per tonne while the actual price is somewhere around $1000 per tonne, then farmers will always be tempted to over use chemical fertilisers irrespective of the call,” a senior industry official remarked. 

 

He said in Indian rupees, the current actual price of a bag of urea is somewhere around Rs 4000 while Indian farmers are getting it at a rate close to Rs 270 per 45 kg bag. 

   

“Unless this anomaly is corrected, no amount of campaigns or awareness will yield the desired result of cutting down use of chemical fertilisers,” the official remarked. 

 

India’s is estimated to have consumed close to 40 million tonnes of urea in FY26, which is one of the highest in recent times. 

 

The Centre’s fertiliser subsidy in Fy-26 is projected to have touched almost Rs 2.17 trillion almost 30 per cent more than the Budget Estimates Rs 1.67 trillion due to bumper consumption. 

 

“As per some studies, in states such as Punjab and Haryana, actual consumption of fertilisers is almost 50 per cent of their recommended dosages while the same in Uttar Pradesh is 25 per cent higher,” the official remarked. 

 

Earlier, urea was the only product which was under price control but since COVID, there has been an unofficial price cap of DAP as well, effectively putting it outside the nutrient-based subsidy regime.

 

In 2024–25, India consumed about 70.7 million metric tonnes (MMT) of fertiliser products, equivalent to roughly 33 MMT of nutrients (nitrogen (N), phosphorus (P) and potash (K) nutrients). 

 

The Centre though has assured that it has since the last few years undertaken multiple measures to check the rampant use of chemical fertilisers in the country including launching the PM-PRANAM (Prime Minister’s Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) scheme since 2023-24 budget. 

 

Under the same, the Central government returns back the subsidy saved by cutting down the use of chemical fertilisers back to the states for developmental purposes.

 

That apart, in the wake of the West Asia crisis, government officials said states have been told on judicious use of fertilizers and ensuring timely and orderly last-mile delivery.

 

That apart, last year, there was a campaign started for ‘Dharti Mata Bachao Andolan Samitis,’ set up at the Gram Panchayat, Sub- Divisional and the District level. 

 

The states have again been requested to mobilise these local committees for monitoring as well as equitable distribution.

“PM Modi's push towards bio-fertilizers is nothing short of a green revolution for the 21st century. Chemical fertilizers have served their purpose, but their era must give way to a smarter, more sustainable path,” Harsh Vardhan Bhagchandka, President, IPL Biologicals said in a statement.