Budget 2026 sets fertilizer self-sufficiency as India’s new security frontier

India’s food security debate is at a stage where the key question is not whether we can buy enough fertilizer, but whether we can exercise strategic control over a resource that has implications for the entire food cycle, from agricultural yields and incomes to nutrition outcomes. In that sense, fertilizer self-sufficiency is today a priority issue of national security, and not just a regional concern.

In this backdrop, the Union Budget 2026-27 makes a meaningful impact by bringing biology and technology into the same frame. The Bharat-Vistaar proposal, envisioned as a multilingual AI tool integrating AgriStack and ICAR’s agricultural practices package with AI systems, is not just another digital initiative. This signals a change in mindset towards smart systems that can improve farmers’ decision-making abilities, reduce risks and increase productivity through customized guidance.

protect against instability

Even in a situation where the availability of fertilizers is stable, inefficiencies in nutrient application can deplete soil health, subsidize resources and destroy maximum yields. This is where Bharat-Vistaar’s AI intelligence inputs will ensure that farmers are provided information about the right product and right dosage at the right time. Bharat-Vishart should be supported by science and provide useful advice to last level stakeholders.

With India-expansion, the Budget prioritizes affordable and sustained supply of fertilizers with a net budgetary allocation of ₹1.71 lakh crore for 2026-27. This will protect farmers from global price volatility and supply disruptions.

This is important as fertilizer markets today face supply shocks due to the volatile geopolitical situation. Therefore, India’s strategy should have a dual approach. First, to protect farmers from price rises today, and second, to continuously build domestic and diversified capacity for the future. The move by Indian firms in developing technology indigenously while partnering with global leaders on crop specific fertilizers is an apt example of how crop nutrition players are managing risk in a disrupted world by localizing production and developing custom solutions suitable for the Indian market.

pivotal spine

According to a press release issued by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, early signs are that efforts to be self-reliant are succeeding, as seen total domestic fertilizer production reach an all-time high of 524.62 lakh tonnes in 2025, meeting about 73 per cent of India’s total fertilizer demand that year. These gains reflect sustained policy focus, investment in capacity and a clear recognition that fertilizer security underpins food security.

Within this, urea remains an important backbone and expansion and optimization of domestic capacity will strengthen resilience. According to the Fertilizer Association of India, urea sales increased by 3.8 per cent to 31.16 million tonnes during April-December 2025, compared to 30.02 million tonnes in the same period last year. Domestic urea production during the period stood at 22.44 million tonnes, while imports increased by 85.3 per cent to 8.00 million tonnes, helping underpin higher sales and availability during peak months of crop nutrition.

However, a stable urea regime is only part of the equation. India’s next leap depends on balanced nutrient use and soil sustainability, especially as climate variability increases yield risks for small and marginal farmers.

The budget provides a framework for considering agriculture as a strategic national imperative. That clarity was needed. Now the hard work begins: translating the policy into practice, the allocation into impact and the framework into results.

(The author is Chairman of Matix Fertilizers and Chemicals Ltd and serves on the Global Board of the International Fertilizer Association. Views are personal.)

Published on February 8, 2026

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