Urea sales increased by 8.4% to 387.92 lakh tonnes (litres) in the last financial year, which was 357.81 liters in 2023-24. Photo courtesy: PTI
The government may announce a mission on fertilizers in the upcoming budget. The objective of this mission is to reduce the use of chemical fertilizers and cut the subsidy bill. Sources said the mission may also include incentives to promote alternatives including bio-fertilizers to reduce current chemical fertilizer imports by at least 20 percent.
“The mission requires a five to ten year horizon with specific targets. Even a 6-7 per cent decline in annual sales would balance the current rising trend, effectively keeping consumption at current levels,” a source said.
Sources said it could be named “Mission for Self-Reliance in Fertilizers” with a target to cut imports by 20 per cent in five years or 35 per cent in 10 years.
surge in sales
India’s fertilizer sales touch an all-time high of 655.94 lakh tonnes (litre) in 2024-25, up from 600.79 lakh tonnes (litre) in FY24. The previous highest level was 621.91 liters in 2020-21.
Latest official data shows urea sales reached 387.92 lakh tonnes (LT) during the last financial year, up 8.4 per cent from 357.81 LT in 2023-24. Muriate of Potash (MOP) increased by 33.9 percent from 16.44 liters to 22.02 liters and Complex (combination of all nutrients) increased by 28.2 percent from 116.8 liters to 149.72 liters. Sales of di-ammonium phosphate (DAP) declined from 109.74 liters to 96.28 litres, mainly due to shortage till mid-November 2024.
Against the Budget Estimate (BE) of ₹1,67,899.5 crore for fertilizer subsidy, the government has disbursed ₹41,482.33 crore till June 30. However, the subsidy on phosphatic and potash fertilizers was later increased to ₹75,000 crore from the initial ₹49,000 crore (BE).
policy convergence
Looking at the data, the idea is to merge the PM-Pranam scheme with the proposed mission, as the former was promoted for the same purpose. Under the PM-Pranam scheme, states are given financial incentives to reduce the use of chemical fertilizers. Amid increasing sales, many experts have advocated improvements in this scheme.
Although the proposed fertilizer is not part of the mission, sources said, there could be a higher allocation for the mission on natural farming as its adoption is directly linked to reducing the use of chemical fertilizers. ICAR may also be tasked with developing new technologies that require less use of nitrogen, phosphorus and potash.
Published on January 25, 2026
