The Union Government of India has initiated a campaign, Aatma Nirbhar Bharat, aimed at increasing the nation’s self-reliance in fertilizers. With this initiative, Indian fertilizer companies are getting advice and support to strengthen their backend supply chain.
The Role of Agriculture and Fertilizer in India’s Economy
Agriculture, along with its allied sector, is the primary income source for most Indian citizens. The sector contributes 19.9% to India’s GDP and engages about 54.6% of the country’s population. Therefore, the fertilizer industry, which provides vital raw materials for crop production, plays an essential part in growing the agriculture sector.
Fertilizers such as Diammonium Phosphate (DAP), monoammonium phosphate (MAP), nitrogen, phosphorus, and potassium (NPKs), and single superphosphate (SSP) produced by the Indian fertilizer industry are of great significance. These fertilizers aid in developing healthy crops.
The Challenges Faced By the Fertilizer Industry
India depends heavily on phosphate rock, primarily sourced from Rajasthan and Madhya Pradesh, but the problem lies in the fact that 90% of it is imported. This dependency on imports poses a substantial challenge to the fertilizer industry.
Indian Farmers Fertiliser Cooperative Limited (IFFCO), the largest fertilizer manufacturer, along with National Fertilizers Limited, hold a significant share in the industry.
Innovative Initiatives for Fertilizer Production
Several innovative measures like Neem Coating of Urea, New Urea Policy (NUP) 2015, and The Nutrient Based Subsidy (NBS) Scheme have been undertaken to enhance fertilizer production.
Understanding Diammonium Phosphate (DAP)
DAP is the second most commonly used fertilizer in India after urea. Farmers apply this fertilizer just before or at the onset of sowing. It is rich in phosphorus, stimulating root development, and is similar to urea, the preferred source of nitrogen for farmers.
Tackling DAP Dependency
Efforts are underway to resolve DAP dependency by encouraging joint ventures abroad. For example, acquisition of a 45% equity share in a Senegal-based phosphate mining company, Baobab Mining and Chemicals Corporation by an Indian fertilizer company.
Additionally, the government of India is exploring potential potassic ore resources domestically in states like Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, Andhra Pradesh, and Karnataka.
Analysing UPSC Civil Services Previous Year Question (2020)
In the 2020 UPSC Civil Services preliminary examination, a question on chemical fertilizers in India was asked. The question had three statements, out of which two were correct. The incorrect statement claimed that the retail price of chemical fertilizers is market-driven and not administered by the Government. However, the government of India subsidizes fertilizers to keep them affordable. The accurate statements explained how ammonia, an input of urea, is synthesised from natural gas, and sulphur, a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.
