India’s import and consumption of urea, a key crop nutrient, has declined for the first time in decades on the back of higher domestic production of nano urea, a liquid form of the chemical, as well as a move towards eco-friendly alternatives by farmers, official data show.
As part of a broader policy push to limit fertilizer subsidies and promote natural and organic farming, the government has been running PM-Pranam, a scheme announced by finance minister Nirmala Sitharaman in her 2023-24 budget speech.
Food and fertiliser subsidies accounted for about one-eighth of India’s total budget worth nearly ₹39 lakh crore in 2022-23. India, the world’s third-largest fertilizer buyer, relies on imports to meet domestic demand.
Under PM-Pranam, 50% of fertilizer subsidies saved by a state is given back to it as a grant, which states can put to any use, such as building infrastructure, an official said. “In other words, if a state saves ₹3,000 crore, then it will get back ₹1,500 crore,” he said, declining to be named.