Fertiliser Sector
Role in Agricultural Productivity and Policy Linkage
Fertiliser production growth of 3.4% in February 2026 is notable in the context of the government's agricultural policy priorities. India is the world's second-largest consumer of fertilisers (after China). The fertiliser sector is heavily subsidised: the government provides a per-bag subsidy to fertiliser companies based on nutrient-based subsidy (NBS) rates for decontrolled fertilisers, and a fixed maximum retail price (MRP) mechanism for urea. The Department of Fertilisers (under Ministry of Chemicals and Fertilisers) administers fertiliser policy.
- Urea MRP is fixed by the government; the gap between production cost and MRP is covered through subsidies.
- Nutrient-Based Subsidy (NBS) scheme applies to di-ammonium phosphate (DAP), muriate of potash (MoP), and complex fertilisers — not urea.
- India imports significant quantities of urea, DAP, and potash (notably from Russia, Belarus, Canada, Saudi Arabia).
- PM Pranam Yojana: launched 2023 to incentivise states to reduce chemical fertiliser use.
- Nano urea (liquid): developed by IFFCO as a substitute for conventional urea bags.
● Tracked since March 20, 2026 · last seen April 20, 2026 · updates as the daily brief publishes
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