Why Does India Look Beyond Urea Amid Supply Concerns?

India is accelerating efforts to address Urea supply concerns as geopolitical disruptions linked to the Iran war increase fertiliser import costs and raise questions over the security of availability. Moreover, the government is encouraging farmers to adopt natural farming, which could potentially reduce urea consumption by 25–50 per cent. Meanwhile, India has authorised the direct agricultural use of anhydrous ammonia for three years, opening another potential alternative to conventional fertiliser application.

In addition, India is testing green ammonia across major crops, including wheat, rice, sugarcane and maize. Reportedly, early trials have produced encouraging results, highlighting the possibility of developing more efficient and sustainable nutrient-management systems. However, shifting away from conventional urea fertilizer will not be straightforward. Currently, India faces limited domestic green ammonia availability, whereas wider adoption would require new infrastructure, specialised handling systems and stringent safety measures.

Besides this, the economics remain a challenge. Significantly, subsidised urea is cheaper for farmers, making alternative inputs less attractive unless their costs become competitive or additional policy support is provided. Against this backdrop, strengthening urea supply while developing alternative fertiliser options remains important for maintaining agricultural stability.

The changing fertiliser landscape could nevertheless create opportunities for green ammonia production, natural farming technologies and precision nutrient management. Reducing excessive urea demand could also help lower India’s dependence on imports, ease pressure on Urea supply, and improve resilience against global market disruptions.