Paper: GS – III, Subject: Agriculture/Economy, Topic: Fertiliser Subsidy & Food Security, Issue: Policy reforms in fertiliser sector.
Context:
Rising geopolitical tensions in West Asia and disruptions in global energy markets have highlighted India’s heavy dependence on imported fertilisers and feedstocks, raising concerns about food security and subsidy burden.
Key Takeaways:
Key Idea of the Article (Current Challenges in Indian fertilizer sector):
1. Geopolitical Exposure:
- Global conflicts can disrupt fertiliser supply because fertiliser production depends heavily on natural gas and global trade routes. India is highly dependent on imports for fertilisers and their raw materials.
- Stagnant Domestic Production: India consumes about 40 million tonnes of urea annually, while domestic production is only about 30 million tonnes.
- More than 80% of ammonia and sulphur imports (raw materials) come from Gulf countries. India imports almost all potash (MOP) and 90–95% of phosphatic raw materials.
- Most of these imports are mainly from Gulf countries through strait of Hormuz.
- Agricultural exports to Middle East ($11.8B in FY25) also strained during ongoing west asia conflict.
2. Fertiliser subsidy policies of Indian Government distorting nutrient usage in agriculture and subsidy leakages are high (20%), which are undesirable.
3. The current crisis offers an opportunity to reform the fertiliser sector for long-term food security (in similar way 1991 Balance of Payments crisis compelled India to undertake LPG reforms).
Conclusion:
The current geopolitical crisis highlights the strategic vulnerability of India’s fertiliser sector.
If used wisely, this disruption can become an opportunity to implement long-overdue fertiliser policy reforms that strengthen food security and fiscal sustainability.
Source: (The Indian Express)
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2026 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040