Context:
China has suspended exports of urea and specialty fertilizers from October 15, causing concerns for India ahead of the Rabi crop season. India is heavily dependent on China for fertilizer imports, especially specialty fertilizers critical for modern agriculture.
Key Highlights / Details
China’s Export Suspension
• Export halt includes urea, DAP (Diammonium Phosphate), TMAP (Technical Monoammonium Phosphate) and urea-based solutions like AdBlue.
• Suspension expected to last 5–6 months (as per Soluble Fertilizer Industry Association).
• China had only recently reopened exports from May 15 to Oct 15 after stringent quality checks.
• Move impacts global fertilizer prices, not just India.
Impact on India
• India imports 95% of specialty fertilizers from China.
• Products affected include:
- TMAP – high-efficiency phosphate fertilizer
- AdBlue – urea-based emission control fluid used in tractors/trucks
• India is the world’s second-largest consumer of fertilizers.
• This suspension comes at a crucial stage before Rabi sowing of wheat, mustard, barley, and gram.
• Expected outcomes: - Short-term fertilizer shortage
- Increase in import prices
- Higher subsidy burden on Government of India
- Pressure on farmers unless domestic supply is maintained
Why China halted exports
• To protect domestic food security
• Stabilize own fertilizer demand and control local prices
• Strengthen self-sufficiency in agriculture inputs
Relevant Prelims Points
• Subsidy on urea: Government-fixed MRP = ₹242 per 45-kg bag
• Nutrient-Based Subsidy (NBS): Governs DAP, MOP, NPK fertilizers
• India’s top fertilizer suppliers: China, Russia, Oman, Saudi Arabia, Morocco
• Rabi season sowing: November–February
• PM-PRANAM scheme (2023): Encourages balanced fertilizer use
Relevant Mains Points
Issues Highlighted
• Import vulnerability and overdependence on China
• Soil nutrient imbalance – overuse of urea
• Delayed diversification of supply sources
• Rising subsidy bill → fiscal pressure
Government Measures Needed (Way Forward)
• Expand long-term supply contracts with Russia, Morocco, Saudi Arabia
• Boost domestic fertilizer capacity (e.g., revived urea plants at Gorakhpur, Ramagundam, Barauni, Sindri)
• Promote Nano Urea & Nano DAP by IFFCO to reduce imports
• Strengthen Atmanirbhar Krishi initiatives
• Encourage Organic & Biofertilizers under PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth (PM-PRANAM)
• Build strategic fertilizer reserves like petroleum reserves