Changing Trends in Fertilizer Use | 13 Dec 2024

Source: BS 

Why in News?

Recently, the sales of fertilisers Di-Ammonium Phosphate (DAP), a key fertiliser for rabi crops, have declined significantly by 25.4% during April to October FY25, while that of NPKS (Nitrogen, Phosphorus, Potassium, and Sulphur) fertilizers surged by 23.5% in the same period.  

• This shift is largely driven by reduced imports and higher costs of DAP, encouraging farmers to opt for alternatives like NPKS, which provide more balanced soil nutrition. 

What are Factors Influencing the Shift in Fertilizer Usage Preferences? 

• Decline in DAP Usage: The shift is largely driven by rising costs and supply chain issues associated with DAP, prompting farmers to seek alternatives. 
  • Global challenges like the Russia–Ukraine war and Belarus sanctions disrupted potash markets leading to rising Muriate of Potash(MOP) prices in FY23. These countries are among major producers of potash in the world. 
  • DAP sales declined by 30% to 2.78 million tonnes due to the Persian Gulf crisis which has led to prolonged shipping delays, extending transit times from the usual 20-25 days to nearly 45 days. 
    • This led to prices for DAP rising to approximately USD 632 per tonne in September 2024. 
• Shift in Fertilizer Preferences: Farmers are increasingly turning to NPKS fertilizers, which are considered more beneficial than DAP due to their balanced nutrient composition. The 20:20:0:13 NPKS grade, offering balanced quantities of nitrogen, phosphorus, potash, and sulphur has seen significant sales growth.

What are the Benefits of Using NPKS Fertilizer? 

• Balanced Nutrient Supply: NPKS fertilizers provide a comprehensive supply of essential nutrients- Nitrogen (N), Phosphorus (P), Potassium (K), and Sulfur (S)- which are critical for plant growth, enhancing the overall health and productivity of crops. 
  • This balance ensures that plants receive adequate nutrients for various growth stages, from vegetative to reproductive phases. 
• Improved Soil Health and Sustainable Agriculture: : Sulfur, an essential nutrient often deficient in soils, improves root development, enzyme activation, and resistance to diseases.  
  • By including sulfur, NPKS fertilizers enhance soil health and fertility, promoting more efficient nutrient uptake by plants. 
• Enhanced Crop Yield: It helps in boosting crop yield by improving photosynthesis, strengthening plant immunity, and promoting better flowering, fruiting, and seed formation. This leads to higher productivity, which is particularly beneficial for food security. 
• Optimal Plant Growth: It is designed to support overall plant growth, improving root and stem development, increasing chlorophyll production, and enhancing drought resistance, which helps crops thrive in varying environmental conditions. 

What are the Challenges with Fertilizer Usage in India? 

• Imbalance in Fertilizer Use: India’s actual NPK ratio (9.8:3.7:1 in Kharif 2024) deviates significantly from the recommended 4:2:1 ratio, leading to nutrient deficiencies and soil degradation. 
  • This imbalance, with excessive nitrogen and insufficient phosphorus and potassium, leads to nutrient deficiencies, soil degradation, and reduced crop yields. 
• Excessive Use of Nitrogenous Fertilizers: India is the second-largest consumer of urea in the world after China, but its overuse causes soil degradation, water pollution, and greenhouse gas emissions. Subsidies distort the fertilizer market and promote inefficiency. 
• Low Production and High Consumption: Despite a slight increase in production in fertilizers from 385.39 LMT in 2014-15 to 503.35 LMT in 2023-24, domestic fertilizer production remains inadequate to fully meet the country's demand. 
  • In 2020-21, the total consumption of fertilizers was about 629.83 LMT.  
• Dependence on Imports: India imports around 20% of its urea, 50-60% of diammonium phosphate (DAP), and 100% of muriate of potash (MOP) fertilisers from nations such as China, Russia, Saudi Arabia, UAE, Oman, Iran, and Egypt. 
  • This makes India highly dependent on global supply chains for key fertilizer nutrients and exposed to global price fluctuations and supply volatility. 

Way Forward 

• Balanced Fertilizer Usage: Promoting balanced fertilizer usage, with an emphasis on NPKS (nitrogen, phosphorus, potassium, and sulfur), can help address the imbalance in the NPK ratio, enhance soil health, and decrease dependency on nitrogen-dominant fertilizers such as urea. 
• Promotion of Organic and Bio-fertilizers: Incentivizing organic farming and bio-fertilizers can reduce chemical fertilizer dependence, enhance soil fertility, and minimize the environmental impact of synthetic fertilizers. 
• Efficient Fertilizer Distribution: Streamlining fertilizer subsidies and distribution through a targeted approach will reduce inefficiencies and promote balanced, cost-effective fertilizer use. 
• Domestic Production Capacity Expansion: Expanding domestic production of phosphatic and potassic fertilizers, with investments in technology and infrastructure, will reduce India's dependence on imports and strengthen supply chain resilience 
• Sustainable Fertilizer Policies: The government should design policies that encourage the judicious use of fertilizers, taking into account regional soil types and crop-specific nutrient needs.