India's policy on urea | Explained

📌 Summary:

• The Cabinet Committee on Economic Affairs (CCEA) recently approved the National Investment Policy for Urea (NIPU)-2026
• Trigger/context: (1) fears of a fertiliser shortage during the ongoing kharif season due to the situation in West Asia (supply/price disruption); (2) higher demand linked to El Niño conditions; (3) complaints of over-use of chemical fertilisers such as urea
• Aim: achieve self-reliance in urea production — a sector currently dependent on imports
• Mechanism: the policy will encourage new investment to set up gas-based urea manufacturing units in the country, expanding domestic capacity
• Significance: reduces import dependence and forex outgo, supports fertiliser (and food) security, and ties into the broader push for balanced fertiliser use

🎯 UPSC Relevance: GS3 (Indian Economy — agriculture, subsidies, food security; fertiliser sector self-reliance); links input security to farm output and the subsidy burden.

📝 Prelims Facts:

• Policy: National Investment Policy for Urea (NIPU)-2026, approved by the CCEA
• New units to be gas-based; goal is self-reliance / cutting urea imports
• Drivers cited: West Asia situation, El Niño-linked demand, over-use of chemical fertilisers

🔑 Key Term: Urea — the most widely used nitrogenous chemical fertiliser in India, heavily subsidised; its over-application degrades soil health and skews the nutrient (NPK) balance.