Due to the closure of the Strait of Hormuz, the problem of India’s dependence on fertilizer imports has come to the fore. This concern has increased at a time when the country is preparing for the Kharif sowing season. In a report by Rabobank in 2025, India was included among the countries which could be most affected by the long-term closure of the Strait of Hormuz. India has strategic reserves in the case of crude oil, but no such large reserves for nitrogen-based fertilizers. That means, at present, farmers have to depend on whatever fertilizer is available in the supply chain.
India imports urea from Oman, Saudi Arabia and Qatar. If UAE is also added to this, the share of Gulf countries increases further. For this reason, India’s fertilizer subsidy bill will reach approximately Rs 1.86 lakh crore in 2025-26, which is more than 40% of the total subsidy expenditure of the central government. If supply routes change due to closure of Hormuz and shipping becomes expensive, this cost may increase further.
Soil health also deteriorated
The health of India’s soil has also been affected due to excessive use of chemical fertilizers for many decades. The usage ratio of NPK (Nitrogen-Phosphorus-Potash) in the country has reached 10.9:4.4:1, whereas according to scientists the correct ratio should be 4:2:1. Not only this, a large part of the fertilizer that is applied in the fields is not utilized by the crops. It flies in the air, flows with water or goes underground. This has a negative impact on both soil and groundwater.
Big expenditure on subsidy, limited benefit
According to ICRIER estimates, for every rupee spent on fertilizer subsidy, the country gets a benefit of only about 88 paise. On the contrary, money spent on agricultural research gives more benefits. Currently, India is spending Rs 1.86 lakh crore on chemical fertilizers, while the budget for the National Mission on Natural Farming is only Rs 2,481 crore.
Biofertilizers can become an alternative
Biofertilizers are biological inputs that contain microorganisms such as bacteria and fungi. These help in fixing nitrogen in the soil, dissolving phosphates and improving soil health. One of their advantages is that they can be made in the country itself and they are generally cheaper than chemical fertilizers. If their quality is good and farmers are given proper information about their use, then they can prove to be very effective.
Good examples from some states
Some states in India have taken good initiatives in this direction. Sikkim has made about 76 thousand hectares of its farming completely organic. Whereas in Andhra Pradesh, more than 10 lakh farmers have joined the Community Managed Natural Farming Program and the cost of farming has started reducing within a few seasons.
Markets and policies are a big challenge
The biofertilizer sector in India has grown after 2015, but there are still many challenges. There are mostly small regional producers in this sector, adherence to quality standards is not uniform everywhere and the right advice does not reach the farmers. Apart from this, the biggest thing is that chemical fertilizers get heavy subsidy, whereas biofertilizers do not get any subsidy.
what needs to be done
According to experts, three major decisions are necessary to promote biofertilizer. First, they should be included in the nutrient-based subsidy system. Agriculture Minister Shivraj Singh Chauhan has suggested that fertilizer subsidy should be given directly to the farmers through DBT so that farmers can choose the fertilizer as per their need. This may increase the use of biofertilizer.
Second, quality control should be strengthened in about 10,000 Bio-Input Resource Centers (BRC) being built under the National Mission on Natural Farming. Third, the process of approving new microbial strains should be expedited, because biofertilizers have a short shelf life and the market changes rapidly.
change will happen gradually
Experts say that biofertilizers and natural farming cannot immediately replace chemical fertilizers. But by gradually increasing their use, India can reduce dependence on fertilizer imports, improve soil health and also reduce the costs of farmers. The crisis in the Strait of Hormuz is a reminder that India needs to make long-term changes in its farming and fertilizer policies.