India plans 8-9 new urea plants to add 10 million tonnes of capacity and reduce dependence on imports
Boosting production may address shortages, but India’s fertiliser policy faces deeper structural flaws
Flat subsidies make urea cheaper, encouraging overuse and pushing fertiliser costs higher for the government
With urea demand rising 5% yearly, new plants may still fall behind future requirements
Urea production relies on LNG, exposing plants to global fuel price swings and supply disruptions
A farmer-focused subsidy model could reduce urea misuse and restore balance in fertiliser consumption