To reduce rising imports of fertilizers and improve soil health, the Central Government is formulating a Mission for Self-Reliance in Fertilizer, which is likely to be announced in the Union Budget 2026-27. The mission aims to reduce the demand for chemical fertilizers by 20 per cent by 2030 through phased targets, promotion of alternative fertilizers, use of domestic minerals, crop diversification and nutrient efficiency research. The move aims to reduce the subsidy burden, curb indiscriminate use of chemical fertilizers and strengthen long-term sustainability in Indian agriculture.
The Central Government is preparing to take an important step to reduce the increasing dependence on fertilizer imports and protect soil health. The government is preparing a comprehensive strategy to achieve self-reliance in the fertilizer sector in a phased manner, reduce expenditure on fertilizers and curb indiscriminate use of chemical fertilizers. The government can make an announcement for this “Mission for Self-Reliance in Fertilizers” In the upcoming Union Budget 2026-27.
Target to reduce fertilizer imports by 20 percent by 2030
The Mission for Self-Reliance in Fertilizers aims to reduce fertilizer imports by 20 per cent by 2030 through an effective and holistic strategy. Under the phased plan, targets will be set every five years on how to reduce the use of chemical fertilizers. Adequate budgetary allocation will be provided for the mission.
Increasing dependence on fertilizer imports
Consumption of chemical fertilizers is increasing in the country, requiring large-scale imports to meet the demand. India’s fertilizer imports may reach a record US $ 18 billion in the current financial year 2025-26, increasing by almost 76 percent compared to the previous year. Till November this year, imports of urea have increased by 120 per cent, while imports of di-ammonium phosphate (DAP) have increased by about 56 per cent. The increasing dependence on imports not only creates challenges in ensuring timely supplies to farmers, but also increases the burden of fertilizer subsidies and the country faces price volatility.
Increasing Consumption: Urea consumption is expected to cross 40 million tonnes in the current year, while DAP consumption may reach around 10 million tonnes. The use of complex fertilizers is also increasing. The speed at which chemical fertilizer use and import is increasing is creating challenges on soil health, environmental and financial fronts.
Subsidy Burden: In the Union Budget 2025-26, the government had provided Rs 1,67,887 crore for fertilizer subsidy. According to the revised estimates, this figure is likely to be much higher than the budgeted amount. Last year the fertilizer subsidy was Rs 1,71,299 crore.
Declining Productivity: Scientists believe that unbalanced use of chemical fertilizers has reduced “nutrient use efficiency.” In other words, the increase in production per kilogram of fertilizer is now much lower than before.
Fertilizer Self Reliance Mission
According to highly placed sources in the government, the central government is set to launch a long-term mission to reduce dependence on fertilizer imports and address challenges related to soil health. Under this mission, fertilizer self-sufficiency will be strengthened by using domestically available mineral options. Other nutrients that can replace traditional chemical fertilizers will be promoted and emphasis will be laid on increasing the production of alternative fertilizers through new research. Overall, this will be a comprehensive mission focused on self-reliance in fertilizers.
Use of domestic mineral resources: Research will be conducted to develop new fertilizer “molecules” using minerals available within the country, with a special focus on reducing imports of potash and phosphorus.
Promotion of alternative fertilizers: Organic fertilizers, alternative fertilizers, biological and microbial-crop synergy and micronutrients will be promoted in place of chemical fertilizers to improve soil health.
Crop Diversification: Emphasis will be laid on expanding the area under crops that require less chemical fertilizer use. For example, increasing the area under pulses will not only reduce fertilizer requirements but will also reduce imports of pulses.
Nutrient Efficiency Research: The focus will be on developing crop varieties that can use nitrogen, phosphorus and potash more efficiently. Nutrient efficiency will be the main focus in the development of new varieties.
