India is witnessing unusual queues of farmers seeking urea fertiliser in several States in 2025. Telangana stands out with the most visible shortages. The immediate cause is a good monsoon that boosted paddy cultivation. However, the deeper reason lies in long-standing crop pricing policies that favour paddy over other crops. This has shaped fertilizer demand patterns and created structural imbalances in agriculture.
Historical Context of Fertiliser Use in India
Before the Green Revolution in the 1960s, India’s fertiliser use was minimal, under 2 kg per hectare. Farmers mainly used organic manure. The introduction of high-yielding varieties of paddy and wheat, assured irrigation, and fertiliser subsidies triggered a massive rise in urea consumption. From less than 2 million tonnes in the early 1970s, India’s urea use soared to over 21 million tonnes by 2024, making it the world’s second largest consumer.
Crop Patterns and Fertiliser Demand
Fertiliser use is uneven across crops. Paddy is highly fertiliser-intensive, with 150-200 kg of urea per hectare. Pulses and oilseeds require far less, around 30-40 kg per hectare. Wheat uses less urea than paddy but more than pulses. States with dominant paddy cultivation like Punjab, Haryana, Telangana, and Tamil Nadu consume most of the urea. This pattern reflects government procurement and price support policies that encourage paddy cultivation.
Impact of Minimum Support Price (MSP) Policy
MSP is announced for 23 crops but large-scale procurement occurs mainly for paddy and wheat. This creates a guaranteed market for these crops but not for pulses, oilseeds or millets. Farmers in Telangana and other States expand paddy cultivation due to assured procurement and better returns. Telangana’s paddy area has multiplied fivefold in a decade. This MSP bias drives excessive fertiliser demand and regional imbalances.
Excessive Urea Use and Environmental Concerns
Farmers often apply more urea than recommended, believing it increases yields. Nitrogen use efficiency in India is low, around 30-35%, causing large nitrogen losses to the environment. Continuous nitrogen application without balanced phosphates and potash has led to soil nutrient imbalances. The ideal NPK ratio is 4:2:1 but it was 11.6:4.6:1 in 2024. This has caused declining soil fertility, groundwater nitrate contamination, eutrophication of water bodies, and release of potent greenhouse gases like nitrous oxide.
Policy Implications and Structural Challenges
Government efforts like awareness campaigns and soil health cards have limited impact. The root cause is the MSP and procurement system that favours paddy. Without diversifying procurement and providing real price support for pulses, oilseeds, and millets, farmers will continue to grow paddy and demand more urea. Structural reforms are essential to reduce fertiliser pressure sustainably. Simply regulating urea supply or blaming farmers will not solve the problem.
Future Directions in Crop and Fertiliser Policy
Reforming crop procurement policies to include diverse crops is vital. Extending assured prices to other crops can make them economically viable alternatives to paddy. Balanced fertilisation promotion must accompany these reforms. Rationalising fertiliser subsidies and encouraging efficient use will help restore soil health and reduce environmental damage. Long-term sustainability depends on aligning crop incentives with ecological and economic goals.
Questions for UPSC:
- Critically discuss the impact of Minimum Support Price (MSP) policies on agricultural crop patterns and fertiliser use in India.
- Examine the environmental consequences of excessive nitrogen fertiliser use in Indian agriculture and suggest sustainable alternatives.
- Taking example of India, analyse how government procurement policies influence farmers’ crop choices and agricultural sustainability.
- Discuss in the light of recent developments, the challenges and reforms needed in India’s fertiliser subsidy and distribution system.
