India’s annual urea consumption, amounting to nearly 36 million tons, ranks second globally, just behind China’s 51 million tons, which is primarily coal-based. A significant portion of India’s urea is imported, contributing to 7.6 million tons of the total 36 million tons consumed in the last fiscal year. Even domestically-produced urea relies heavily on imported natural gas as its feedstock.
Moreover, the efficiency of nitrogen use in India (NUE) poses a challenge, as only around 35% of the nitrogen applied through urea is effectively utilized by crops for producing yields. This decline in NUE, from an estimated 48% in the early 1960s, has led to the situation where farmers apply more fertilizer to achieve the same yields.
Government Initiatives to Reduce Urea Consumption
- Nutrient-Based Subsidy Regime (NBS): Implemented in 2010, NBS involves fixing a per-kg subsidy for each fertilizer nutrient (Nitrogen, Phosphorus, Potash, and Sulfur). This move promotes balanced fertilization, discouraging excessive use of urea, di-ammonium phosphate (DAP), and muriate of potash (MOP).
- Neem-Coating of Urea: In 2015, the government mandated the neem-coating of all domestically-manufactured and imported urea. This measure initially led to a dip in consumption, but the trend reversed after 2018-19.
- Introduction of Liquid Nano Urea: In 2021, the Indian Farmers’ Fertiliser Cooperative (IFFCO) introduced liquid ‘Nano Urea’, a nanoparticle-based urea aimed at reducing imbalanced and indiscriminate urea use. This innovation enhances crop productivity while minimizing soil, water, and air pollution.
Despite these efforts, the government’s attempts to curb illegal diversion for non-agricultural use and increase NUE have not significantly reduced urea consumption.
Urea Gold: Addressing Deficiencies and NUE
A notable solution in this context is ‘Urea Gold’. Unlike regular urea, which contains 46% nitrogen (N), Urea Gold contains 37% N along with 17% sulfur (S). This innovative formulation addresses two key aspects:
- Sulfur Delivery: Urea Gold provides sulfur along with nitrogen. Given India’s deficient soils in sulfur, which is crucial for oilseeds and pulses cultivation, Urea Gold targets a deficiency that impacts vital crops for the country.
- Enhancing NUE: Coating sulfur over urea leads to a gradual nitrogen release. This extended release keeps plants greener for longer periods, reducing the need for frequent urea application. Thus, Urea Gold potentially allows farmers to achieve the same yield with fewer applications.
Challenges in Urea Gold Adoption and the way Forward
A significant hurdle in the widespread adoption of Urea Gold is pricing. The projected Maximum Retail Price (MRP) for Urea Gold is expected to range from Rs 400-500 per 40-kg bag, considerably higher than the MRP of around Rs 254 for a 45-kg bag of ordinary neem-coated urea. To overcome this, the government could potentially deregulate MRPs for all coated fertilizers.
Given that regular urea and DAP will continue to be sold at heavily subsidized rates, companies producing fortified fertilizers might find it challenging to charge a substantial premium for their products. Additionally, ensuring the coating process takes place at the factory itself would lead to a more uniform distribution of micronutrients, sparing farmers from the complexities of mixing.
UPSC Mains Questions
- Explain the concept of Nutrient-Based Subsidy (NBS) and how it aims to balance fertilization practices in India.
- What role does sulfur play in Urea Gold, and why is it particularly important for certain crops in India?
- Discuss the potential advantages of using Urea Gold in terms of both nutrient release and crop productivity, and the challenges associated with its adoption due to pricing.
