The easing of tensions in West Asia has brought some relief to global fertilizer markets, but the recent conflict exposed the vulnerability of international supply chains triggering sharp price spikes. Yet, India ensured uninterrupted fertilizer availability through higher domestic production, timely imports and strategic government intervention, demonstrating the resilience of its fertilizer ecosystem. 

A key contributor has been Hindustan Urvarak & Rasayan Limited (HURL), whose revived urea plants have strengthened domestic production, reduced import dependence and supported India's vision of Atmanirbhar Bharat. In this interview with Pragya Lal of Bureaucrats India, Siba Prasad Mohanty, Managing Director of HURL, discusses India's fertilizer preparedness, subsidy reforms, fertilizer security and HURL's roadmap for the future. 

The recent West Asia conflict had raised concerns over global fertilizer supplies and prices. Although the situation has eased somewhat, markets remain volatile. How well placed is India with regard to fertilizer availability over the next six months?

As far as the Kharif season is concerned, India has been very well prepared.
Generally, Kharif fertilizer consumption is around 390 lakh tonnes. Normally, the season begins with an opening stock of around 31 to 33 per cent. This year, however, we are starting with nearly 51 per cent opening stock, around 290 lakh tonnes.
The domestic industry will produce around 95 lakh tonnes. The remaining requirement is also being met through imports. Indian Potash Limited (IPL) has already imported around 22 lakh tonnes, while National Fertilizers Limited (NFL) has floated another tender for approximately 17 lakh tonnes. Therefore, both phosphatic and nitrogenous fertilizers are adequately available for the Kharif season.

At the same time, the West Asia conflict has impacted international fertilizer prices. Imported urea prices, which were earlier around US$600 per tonne, have now increased to nearly US$900-920 per tonne. Naturally, this increases the government's subsidy burden as well as the country's foreign exchange outgo on imports.

Despite global disruptions, India has managed to ensure uninterrupted fertilizer supplies. In your view, what have been the key policy interventions, and what do they mean for India's Viksit Bharat ambition?

I can say that the government has managed the crisis very well. Today, almost every fertilizer company is receiving 95 to 100 per cent of its gas requirement. As far as HURL is concerned, during April and May, all our plants have been operating above 100 per cent capacity, with an average of around 103 per cent.

The government is also focusing on improving soil health. Organic carbon levels in the soil have declined significantly, and this has affected soil fertility. To address this, the government has launched campaigns to educate farmers about balanced fertilizer use. Nearly two crore farmers have already been covered through training programmes, meetings and awareness camps. Farmers are being encouraged to use fertilizers judiciously so that the nutrients already available in the soil can also be effectively utilised.

As far as Viksit Bharat is concerned, the government's recent push towards coal gasification is a very important step. India has coal reserves that can last for more than 100 years. Syngas produced through coal gasification can be used for manufacturing urea, reducing our dependence on imported natural gas. The government's focus is to manufacture both urea and its raw materials within the country, thereby making India more self-reliant.

There has been considerable debate around India's fertilizer subsidy framework, with many economists advocating major reforms, including bringing urea under the Nutrient-Based Subsidy (NBS) regime. What is your assessment?

I partly agree with that opinion.

The Middle East crisis, disruptions in global supplies and the rising cost of raw materials have certainly increased the subsidy burden. At the same time, urea prices have remained unchanged for well over a decade. While this has benefited farmers, it has also led to excessive use of nitrogenous fertilizers.

The fertilizer industry has long maintained that urea should also be brought under the Nutrient-Based Subsidy (NBS) regime, with a fixed subsidy and a variable market price. DAP, NPK and other phosphatic fertilizers are already under the NBS system. However, whenever DAP prices are controlled, farmers tend to shift towards greater use of urea, leading to an imbalance in the use of nitrogenous and phosphatic fertilizers. This ultimately affects the balanced nutrient ratio in Indian agriculture.

HURL has emerged as a key pillar of India's fertilizer self-reliance under the Atmanirbhar Bharat vision. Looking back, what have been HURL's major achievements, and what are the company's future plans?

I am proud to say that in this crisis, the government's vision, which our Hon'ble Prime Minister had seen long back by reviving these fertilizer plants in the country, is now bearing fruit. The revival of HURL's three urea plants has been a major milestone.
Last year, against our capacity of 38.1 lakh tonnes of urea, we produced around 38.97 lakh tonnes, exceeding our rated capacity. This additional production has reduced the need to import urea at very high international prices. As a result, HURL's manufacturing has helped save a substantial amount of foreign exchange while supplying urea within the country.

In that way, HURL has contributed to the vision of Atmanirbhar Bharat. Going forward, we are also expanding beyond the nitrogenous fertilizer sector. We are entering the phosphatic fertilizer segment and have started importing DAP and MOP so that all three nutrients, Nitrogen (N), Phosphorus (P) and Potassium (K), are available to farmers under one umbrella, at an affordable price and at the right time.