India Accelerates Shift Towards Nano Urea and Urea Production Expansion

India is undertaking significant measures to enhance its agricultural productivity and reduce dependency on imported fertilisers.

Announcement by Union Minister:
- Mansukh Mandaviya, Union Chemicals and Fertilisers Minister, declared India’s plan to replace 2.5 million tonnes of conventional urea with nano urea in FY24.
Consumption Trends:
- Urea consumption in the ten months leading to February 2024 decreased to 31.7 million tonnes from 35.7 million tonnes in the previous fiscal year.
Implementation:
- Mandaviya stated efforts to reduce conventional urea consumption by 2.5 million tonnes in FY24, promoting awareness among farmers for nano urea usage.

District-wise Adoption:
- In the last two years, 344 districts reported decreased conventional urea usage, while 74 districts exhibited increased adoption of nano urea.
Production and Sales:
- Indian Farmers Fertiliser Cooperative (IFFCO) sold approximately 3.3 million tonnes of nano urea, valued at ₹7 crore, from August 2021 to February 2024.
Benefits and Controversy:
- Nano urea, claimed to enhance nitrogen availability by 80% and reduce nutrient loss, faces scientific disputes regarding its efficacy.

Current Scenario:
- India operates three urea plants producing 28.4 million tonnes annually, with consumption growing at 6-7% yearly.
Talcher Fertilizers Limited Plant:
- Aiming to increase urea production capacity by 1.25 million tonnes annually through a fourth plant in Odisha.

Import Dependency:
- India imports significant quantities of various fertilisers due to production shortfalls.
Financial Implications:
- The fertiliser import bill reached ₹2.2 trillion in 2022-23, with a substantial portion of the union budget allocated to fertiliser subsidies.
Government’s Fiscal Plan:
- Finance Minister Nirmala Sitharaman proposed a reduction in fertiliser subsidy allocation by 13% to ₹1.64 trillion in FY25, aiming for fiscal prudence.