Punjab farmers protest: What is driving reported shortages of fertilisers

📌 Summary:

• Farmers across five states (incl. Punjab, Haryana) protested on June 8 over inadequate urea and DAP supplies as paddy (kharif) sowing began; 74 protest sites in Punjab under Kisan Mazdoor Morcha
• Demand is highly seasonal: DAP peaks at wheat (rabi, Oct–Nov), urea peaks at paddy (kharif, Jun–Aug)
• Structural cause: Centre releases subsidised stocks in batches (not full requirement at once); farmers allege late arrival, mismatch with local demand, and dealer hoarding/bundling
• Novel factor this year — West Asia war disrupting import supply chains linked to the Gulf
• Import dependence: GCC countries (Oman, Qatar, Saudi Arabia, UAE, Bahrain) supplied ~75% of India's urea imports in 2024-25; Saudi Arabia is largest DAP source
• Global prices of urea and DAP have risen sharply → fertiliser subsidy bill could nearly double to ~Rs 3.4 lakh crore vs Budget estimate of Rs 1.7 lakh crore
• Punjab requirement this kharif: ~30 lakh ha paddy needing ~16 LMT urea + ~2 LMT DAP; state says >11 LMT urea already received in batches; situation "satisfactory"
• Dealer grievance: alleged forced bundling of nano urea/potash/biostimulants with each urea/DAP purchase

🎯 UPSC Relevance: GS3 Economy — agriculture inputs, subsidy economics, import dependence, and how geopolitics (Hormuz/Gulf) transmits to farm-gate supply and fiscal burden.

📝 Prelims Facts:

• DAP = Diammonium Phosphate; urea is the principal nitrogenous fertiliser for paddy
• GCC ~75% of India's urea imports (2024-25); Saudi Arabia largest DAP source
• Projected fertiliser subsidy ~Rs 3.4 lakh crore (≈100% over Budget estimate Rs 1.7 lakh crore)
• LMT = Lakh Metric Tonnes

🔑 Key Term: Nutrient-Based Subsidy / fertiliser subsidy — government support that fixes affordable farm-gate prices while absorbing volatile global input costs.