90% of urea cost from natural gas, 26% domestically sourced

The Standing Committee on Chemicals and Fertilisers examined the constraints preventing India from achieving self-sufficiency in fertiliser production and reducing imports. This matters to citizens because it impacts food security, government subsidy costs, and the availability of essential agricultural inputs.

Ministry of Chemicals and Fertilisers, Department of Fertilisers, and the general public including farmers and taxpayers affected by fertiliser subsidies and prices.

• Constitute a task force to promote domestic urea production under the New Investment Policy.
• Expand phosphatic and potassic (P&K) fertiliser capacity through fiscal and tax incentives for new units.
• Develop indigenous technology for setting up and maintaining fertiliser plants to reduce dependence on foreign licensing.
• Modify the natural gas procurement mechanism to ensure constant supply at competitive prices and expedite natural gas extraction projects.
• Ensure timely completion of projects to enhance domestic P&K fertiliser production and facilitate long-term agreements with raw material-rich countries.
• Set up a special task force for the upgradation, modernisation, and revival of aging urea plants.
• Implement new brown-field and green-field fertiliser projects to minimise import requirements.
• Formulate stringent policies to stop black marketing, establish a network of labs for quality checks, and set up a grievance redressal mechanism.
• Assess the extension of the Urea Subsidy Scheme beyond March 31, 2025.
• Promote higher production of nano fertilisers and introduce a Production Linked Incentive (PLI) scheme for drones used for spraying.
• Train farmers to encourage balanced use of fertilisers, crop rotation, and natural farming methods.

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