India’s journey towards self-reliance in urea production has gained momentum with its focus on Liquid Nano Urea (LNU). By 2025, the nation aims to completely eliminate its dependence on imported urea, with an expansion of its domestically developed LNU. This revolutionary transition is expected to impact the agricultural sector positively, offering myriad benefits over conventional urea.
Understanding Liquid Nano Urea
Liquid Nano Urea is a form of urea reduced to a nanoparticle. Providing nitrogen to plants, this nutrient serves as an alternative to conventional urea, a white chemical nitrogen fertiliser used widely in agriculture. The introduction of LNU aims to lessen the need for conventional urea by at least 50%.
It is an indigenous product, first introduced by the Indian Farmers Fertiliser Cooperative Limited (IFFCO) for global farmers. Its manufacturing occurs at the first Liquid Nano Urea plant in Kalol, Gujarat.
Moving Towards Self-Sufficiency in Urea Production
To supplement the supply chain inefficiencies, India has been importing urea for several decades. As one of the world’s largest importers, the country’s demand significantly influences global urea prices. Therefore, it is prudent to reduce dependencies on imports and promote domestic production.
The aim is to be self-sufficient in urea production, a move that will save the government nearly Rs 40,000 crore. Several brownfield urea plants have been set up in the public sector since 2016 to realise this goal.
Present Status of Fertilizers in India
India consumes approximately 500 LMT of fertilizer annually. Over the years, the government has taken various measures to cut down urea consumption, such as introducing neem-coated urea and promoting organic and zero-budget farming. However, more than a quarter of the nation’s urea requirement was still imported in FY21.
Government Initiatives for Fertilizer Independence
To increase domestic urea production, the government plans to operationalise eight new nano urea plants by November 2025. Other initiatives include mandatory Neem Coating of Urea by the Department of Fertilizers (DoF) and a New Urea Policy (NUP) 2015 aimed at maximizing indigenous production and promoting energy efficiency in urea units. Furthermore, the government also encourages the use of space technology in the fertilizer sector.
The Path forward
For non-urea fertilisers like DAP and Muriate of Potash (MOP), it is essential to ensure uninterrupted supply to farmers at reasonable prices. Streamlining subsidy distribution and curbing corruption in the fertilizer subsidy distribution regime through universalising Direct Benefit Transfer (DBT) in the fertiliser sector is crucial. Efforts are also needed to promote alternative farming techniques like organic and zero-budget farming.
Achieving self-sufficiency in urea production will significantly contribute towards a self-reliant agricultural landscape. It will not only improve the economic performance of our rural sector but also pave the way for sustainable farming practices. These measures aptly demonstrate India’s commitment towards self-reliance and sustainability in the agricultural sector.