Indian farming has moved from bullocks and manure to tractors, diesel pumps, chemical fertilisers and petroleum-based pesticides (‘fossilisation’), while high crude prices make it profitable to turn food crops into fuel (‘fuelisation’). Recent conflicts have exposed both risks together.
Fossilisation of Farming
- Fertilisers: Urea depends on natural gas (LNG) and phosphatic fertilisers on sulphur; both have seen steep price rises.
- Energy use: Tractors, combines and diesel pumps tie farm costs to oil prices.
- Import dependence: India imports gas, ammonia, rock phosphate, potash and pesticide intermediates.
Fuelisation of Food
- Ethanol blending (up to 20%) draws on sugarcane, rice and maize; biodiesel mandates abroad tighten edible oil supplies.
- During droughts such as a strong El Niño year, diverting grain to fuel can raise food prices.
Implications
- Food security: Costlier inputs and lower yields can raise food inflation and hurt small farmers.
- Fiscal and external stress: A larger fertiliser subsidy and import bill widen deficits and pressure the rupee.
- Twin shock risk: As in 1979-80, an oil shock combined with drought can sharply cut farm output.
Way Forward
- Replace urea and DAP with balanced complex fertilisers, nano and bio-fertilisers, and soil health-based dosing.
- Expand solar pumps (PM-KUSUM), drip irrigation and electric farm machinery.
- Prioritise surplus and non-food feedstocks for ethanol, and keep food ahead of fuel during droughts.
- Secure inputs through joint ventures abroad and strategic reserves.
Conclusion
Diversification and irrigation have made Indian agriculture more resilient than in 1979-80. Lowering its hydrocarbon intensity and sequencing biofuel policy around food needs will safeguard both food and energy security.
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Indian Agriculture Energy Security: Policy Reforms