India’s Strategic Shift in Fertiliser Consumption

February 25, 2025

India is undergoing transformation in its fertilizer consumption strategy. This shift aims at reducing reliance on imported high-analysis fertilisers such as urea, di-ammonium phosphate (DAP), and muriate of potash (MOP). The need for this change arises from the high import dependency of these fertilisers. Recently, the government emphasises balanced fertilisation for better crop yield and nutrient absorption.

Import Dependency on Fertilisers

India imports most of its fertilisers. MOP is entirely imported from countries like Canada and Russia. Urea production meets 85% of domestic needs but relies on imported liquefied natural gas. DAP is also largely imported, both as a finished product and as raw materials. The depreciation of the rupee further complicates this dependency.

High Analysis vs Balanced Fertilisation

High-analysis fertilisers offer high concentrations of nutrients. For instance, urea contains 46% nitrogen while DAP has 46% phosphorous and 18% nitrogen. However, most crops require balanced fertilisation, which includes not just nitrogen, phosphorous, and potassium, but also secondary and micronutrients. This shift aims to ensure better nutrient absorption and efficient use of resources.

Emergence of Ammonium Phosphate Sulphate (APS)

Ammonium phosphate sulphate (APS) is being promoted as a viable alternative to DAP. APS contains 20% nitrogen, 20% phosphorous, and 13% sulphur. Despite lower phosphorous content than DAP, APS effectively supports various crops. It uses less phosphoric acid, making it a cost-effective solution for farmers.

Sales Trends and Market Dynamics

Sales of APS have surged, increasing by over 32% in recent months. Conversely, DAP sales are declining. APS is now the third most consumed fertiliser in India, surpassing single super phosphate. The shift in consumption patterns is driven by short supply and high costs associated with DAP imports.

Government Policies and Price Controls

The Government of India has set a maximum retail price for DAP, making imports financially unviable. The price of APS is slightly lower, encouraging its adoption among farmers. The government’s subsidy policies and price controls play important role in shaping fertiliser consumption trends.

The Future of Fertiliser Consumption

The fiscal year 2024-25 is expected to see increase in sales of NPKS complex fertilisers, driven by APS. There is a concerted effort to promote other complex fertilisers to further reduce the use of high-analysis fertilisers. The ultimate goal is to enhance nutrient use efficiency among farmers.

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