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EconomyIndian ExpressEditorial19 May 2026

West Asia crisis opens space for fertiliser policy reform

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๐Ÿ“Œ Summary:

  • Context: PM Modi's call to farmers to cut chemical fertiliser use by half and shift to natural farming; West Asia conflict + Strait of Hormuz closure threaten fertiliser imports
  • Core argument: blanket appeals for "half fertiliser, more natural" are impractical, but the West Asia crisis is the right window to fix India's chronically distorted fertiliser policy
  • Causal chain โ€” why India is so exposed: (1) India has very little natural gas (urea feedstock), almost no rock phosphate, no potash, no elemental sulphur reserves โ†’ heavy import dependence (2) Up to 30% of global fertiliser trade passes through the Strait of Hormuz โ†’ closure disrupts physical availability (3) Subsidy policy historically encouraged high-analysis urea (46% N) and DAP (46% P) over balanced products like Ammonium Sulphate (20.5% N, 23% S) and Single Super Phosphate (16% P, 11% S) (4) High-analysis dominance has caused severe soil nutrient imbalance โ€” secondary nutrients (S) and micronutrients neglected (5) Nutrient Use Efficiency is poor: only ~1/3 of urea N is absorbed by plants; rest lost via ammonia volatilisation or leaching as nitrate (groundwater pollution)
  • Key data: ~30% of global fertiliser trade routed via Strait of Hormuz; urea N use efficiency ~33%; urea N content 46%, DAP P content 46%
  • Solutions proposed by editorial: (1) Free or raise retail fertiliser prices to import parity levels (2) Replace product-wise subsidy with a per-acre direct payment (e.g. โ‚น5,000/acre) for all cultivating farmers (3) Combine fertiliser subsidy savings + PM-KISAN into one direct income support scheme
  • Rationale: present subsidy + price-control system is both fiscally and physically unsustainable; reform "cannot wait any longer"

๐ŸŽฏ UPSC Relevance: GS3 โ€” Agriculture (Subsidies & Issues, fertiliser policy reform); GS2 โ€” Government welfare schemes (PM-KISAN, DBT); GS3 โ€” Energy security & external sector vulnerability via West Asia/Strait of Hormuz

๐Ÿ“ Prelims Facts:

  • N content: Urea 46%, Ammonium Sulphate 20.5%, DAP โ€” N is 18%, P is 46% (Pโ‚‚Oโ‚…)
  • Sulphur in SSP โ€” 11%; in Ammonium Sulphate โ€” 23%
  • Urea N use efficiency: ~33%
  • Strait of Hormuz: ~30% of global fertiliser trade
  • PM-KISAN: โ‚น6,000/year/farmer cash transfer (since 2019)
  • NBS (Nutrient Based Subsidy) covers P&K fertilisers; urea remains under controlled MRP

๐Ÿ”‘ Key Term: Nutrient Use Efficiency (NUE) โ€” fraction of nutrient applied that is actually absorbed and utilised by the crop; for urea-N in India it is only about one-third, with the rest lost to ammonia volatilisation and nitrate leaching, creating both economic waste and environmental damage.

fertilisersubsidy reformStrait of HormuzureaDAP

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