India imports urea primarily to bridge the gap between its domestic demand and production. While India is the world's second-largest producer of urea, it is also the second-largest consumer. Despite significant increases in domestic production, a shortfall remains, necessitating imports to ensure food security for its large population.

This report outlines a comprehensive 5-year roadmap for India to achieve self-reliance in urea production. Building upon the significant progress made in recent years, this roadmap proposes strategic initiatives, technological advancements, and policy reforms aimed at bridging the demand-supply gap, reducing import dependence, and fostering a sustainable domestic urea industry. The plan focuses on enhancing production capacity, diversifying feedstock, promoting efficient fertilizer use, and leveraging cutting-edge technologies to ensure food security and economic stability.

Reasons for Urea Imports:

Several factors contribute to India's reliance on urea imports:

• Insufficient Domestic Production: While India has been ramping up its domestic urea production, it still falls short of the total demand from its vast agricultural sector. In 2023-24, India's urea production was approximately 31.4 million tonnes, while imports stood at 7 million tonnes.
• Dependence on Natural Gas: The primary feedstock for urea production is natural gas. India has limited domestic availability of this crucial raw material, making it dependent on imports. Fluctuations in international gas prices can significantly impact the cost of urea production in India.
• Subsidy Burden: The Indian government heavily subsidizes urea to make it affordable for farmers. This has led to an overuse of urea and a financial strain on the government. The low, fixed price of urea also discourages private investment in the sector.
• Regional Imbalances: Inefficient supply chains can lead to regional disparities in urea availability, necessitating imports to meet demand in certain areas.
• Efforts to Boost Domestic Production:

The Indian government has implemented several policies and initiatives to increase domestic urea production and achieve self-sufficiency:

• New Urea Policy (NUP) 2015: This policy aims to maximize indigenous urea production, promote energy efficiency in urea units, and rationalize the subsidy burden.drishtiias.com+1
• New Investment Policy (NIP) 2012: This policy was introduced to encourage fresh investment in the urea sector. Under this policy, six new urea manufacturing units have been established, significantly increasing the country's production capacity.
• Revival of Closed Fertilizer Plants: The government has been working to revive closed fertilizer plants, such as those in Gorakhpur, Sindri, and Barauni, to boost domestic production.
• Promotion of Nano Urea: The government is promoting the use of Nano Urea, a more efficient and environmentally friendly alternative to conventional urea. Several Nano Urea plants are now operational, with more in the pipeline.
• Coal Gasification: The Talcher fertilizer unit is being revived using coal gasification technology, which will help to reduce the dependence on imported natural gas.

These initiatives have led to a significant increase in India's domestic urea production in recent years. Production rose from 22.5 million tonnes in 2014-15 to 31.4 million tonnes in 2023-24. Consequently, urea imports have also declined from a peak of 9.8 million tonnes in 2020-21 to 7 million tonnes in 2023-24.

Lets dive deeper into the issue and propose a roadmap to make India self reliant in urea production...

1. Current Landscape and Challenges

India is the world's second-largest producer and consumer of urea. Despite substantial increases in domestic production, a persistent gap between demand and supply necessitates significant imports. In 2023-24, India's domestic urea production reached approximately 31.4 million tonnes, while imports stood at around 7 million tonnes against an annual requirement of 35 million tonnes [1]. The government has set an ambitious target to halt urea imports by the end of 2025 [2].

Key challenges hindering complete self-reliance include:

• Persistent Demand-Supply Gap: Despite efforts, domestic production has not yet fully caught up with the ever-increasing demand from the agricultural sector.

• Feedstock Vulnerability: The predominant method of urea production relies heavily on natural gas, a significant portion of which is imported. This exposes the domestic industry to volatile international gas prices and supply chain disruptions [3].

• Subsidy Burden and Market Distortions: The heavily subsidized price of urea, while beneficial for farmers, leads to overuse and places a substantial financial burden on the government. It also disincentivizes private investment in new, more efficient production facilities due to suppressed market prices [4].

• Technological Adoption and Modernization: While new plants have been commissioned and old ones revived, there is a continuous need for adopting advanced, energy-efficient, and environmentally friendly production technologies.

• Logistical and Distribution Inefficiencies: Regional imbalances in urea availability and challenges in last-mile delivery can sometimes necessitate imports even when overall national supply might be adequate.

2. Global Best Practices and Technological Solutions

Several countries are pursuing or have achieved significant self-reliance in urea production, offering valuable lessons for India. Bangladesh, for instance, has set a strategic goal for urea self-sufficiency [5]. China, the world's largest urea producer, primarily caters to its domestic consumption, though it faces environmental production curbs [6].

Technological advancements are crucial for sustainable self-reliance:

• Feedstock Diversification: Moving beyond natural gas is critical. Technologies like coal gasification (already being pursued in India, e.g., Talcher plant) offer a viable alternative for countries with abundant coal reserves [7]. The exploration of green hydrogen (produced via electrolysis using renewable energy) and blue hydrogen (produced from natural gas with carbon capture and storage) as feedstock for ammonia (a precursor to urea) is gaining traction globally, with projects in the Netherlands, UAE, and India in test phases [8].

• Energy Efficiency: Implementing advanced process technologies that reduce energy consumption per tonne of urea produced can significantly lower operational costs and environmental footprint.

• Nano Urea: India's push for Nano Urea represents an innovative approach to efficient fertilizer use, potentially reducing the overall demand for conventional urea. However, addressing concerns regarding high labor costs and effectiveness is crucial for wider adoption [9].

• Carbon Capture, Utilization, and Storage (CCUS): Integrating CCUS technologies into existing and new urea plants can mitigate greenhouse gas emissions, aligning with global climate goals and potentially enabling the production of 'blue' urea.

These global practices and technological solutions highlight the importance of a multi-pronged approach that combines feedstock security, technological innovation, and sustainable production methods to achieve true self-reliance.

3. 5-Year Strategic Roadmap for Urea Self-Reliance (2025-2030)

This roadmap outlines a phased approach to achieve complete urea self-reliance by 2030, building on current momentum and addressing existing challenges. The goals are ambitious but achievable with concerted effort and strategic investment.

Overall Goal: Achieve 100% Urea Self-Reliance by 2030, ensuring stable supply for agriculture and reducing import dependence to zero.

Year 1 (2025-2026): Consolidate and Optimize

Goals:

• Reduce urea imports by an additional 10% (from 7 MT to ~6.3 MT).

• Increase domestic production capacity utilization to 95%.

• Finalize feasibility studies for at least two new large-scale urea plants and one coal gasification project.

Strategic Initiatives:

• Capacity Optimization: Implement efficiency improvements and debottlenecking projects in existing urea plants to maximize output. This includes upgrading older units with modern, energy-efficient technologies.

• Feedstock Security Assessment: Conduct a detailed assessment of domestic natural gas reserves and import contracts. Explore long-term agreements for stable and affordable natural gas supply.

• Nano Urea Promotion (Phase 1): Intensify awareness campaigns and farmer training programs for Nano Urea. Address logistical challenges in distribution and ensure consistent product quality and availability. Establish 2-3 new Nano Urea production units.

• Policy Review and Reform: Review existing subsidy mechanisms to identify potential reforms that encourage judicious use of urea and reduce the government's financial burden, without adversely affecting farmers. Explore direct benefit transfer (DBT) for fertilizer subsidies.

• R&D Focus: Allocate increased funding for research and development in alternative feedstock technologies (e.g., green hydrogen for ammonia synthesis) and advanced fertilizer formulations.

Estimated Investment: INR 5,000 - 7,000 Crores (primarily for plant upgrades, R&D, and initial studies for new projects).

Year 2 (2026-2027): Expand and Diversify

Goals:

• Reduce urea imports by an additional 20% (from ~6.3 MT to ~5 MT).

• Initiate construction of at least one new large-scale urea plant and one coal gasification-based urea plant.

• Increase Nano Urea adoption by 15%.

Strategic Initiatives:

• New Plant Construction (Phase 1): Commence construction of a new large-scale, energy-efficient urea plant, strategically located near feedstock sources or major agricultural hubs. Simultaneously, begin work on a coal gasification-based urea plant to diversify feedstock.

• Feedstock Diversification (Pilot Projects): Launch pilot projects for green hydrogen-based ammonia production, leveraging India's growing renewable energy capacity. Explore partnerships for technology transfer and investment.

• Logistics and Infrastructure Upgrade: Invest in improving railway and road networks for efficient transportation of urea from production units to consumption centers. Develop modern warehousing facilities.

• Skill Development: Launch specialized training programs for engineers and technicians in advanced fertilizer production technologies, including coal gasification and green ammonia.

Estimated Investment: INR 15,000 - 20,000 Crores (major investment in new plant construction).

Year 3 (2027-2028): Accelerate and Innovate

Goals:

• Reduce urea imports by an additional 30% (from ~5 MT to ~3.5 MT).

• Bring one new large-scale urea plant online.

• Scale up coal gasification technology application.

Strategic Initiatives:

• New Plant Commissioning: Commission the first new large-scale urea plant, adding significant domestic production capacity. Ensure smooth operationalization and adherence to environmental standards.

• Coal Gasification Scale-up: Accelerate the development and implementation of coal gasification technology in other suitable locations, reducing reliance on natural gas.

• Nano Urea Promotion (Phase 2): Expand Nano Urea production and distribution networks. Address any remaining farmer concerns through field demonstrations and robust feedback mechanisms. Establish 3-4 more Nano Urea production units.

• International Collaboration: Forge stronger international partnerships for technology sharing, joint ventures, and investment in advanced fertilizer production.

• Precision Agriculture Integration: Promote the adoption of precision agriculture techniques that optimize fertilizer use, thereby reducing overall urea demand.

Estimated Investment: INR 10,000 - 15,000 Crores (continued investment in ongoing projects and new initiatives).

Year 4 (2028-2029): Near Self-Sufficiency

Goals:

• Reduce urea imports by an additional 40% (from ~3.5 MT to ~2.1 MT).

• Bring the coal gasification-based urea plant online.

• Achieve significant progress in green/blue hydrogen-based ammonia production pilots.

Strategic Initiatives:

• Coal Gasification Plant Commissioning: Commission the coal gasification-based urea plant, marking a significant step towards feedstock diversification.

• Green/Blue Urea Commercialization: Based on successful pilot projects, begin planning for commercial-scale green/blue urea production facilities. Secure long-term renewable energy supply for green hydrogen.

• Circular Economy in Fertilizers: Explore opportunities for nutrient recovery from waste streams to produce organic and bio-fertilizers, complementing chemical fertilizers and reducing overall demand.

• Market Monitoring and Intervention: Continuously monitor domestic and international urea markets to anticipate supply-demand dynamics and implement timely interventions if needed.

Estimated Investment: INR 8,000 - 12,000 Crores (focus on scaling up new technologies and infrastructure).

Year 5 (2029-2030): Complete Self-Reliance

Goals:

• Achieve 100% urea self-reliance, with zero or negligible imports.

• Establish India as a leader in sustainable urea production technologies.

• Ensure stable and affordable urea supply for all farmers.

Strategic Initiatives:

• Full Production Capacity: Ensure all new and revived plants are operating at optimal capacity, meeting the entire domestic demand.

• Sustainable Urea Leadership: Position India as a global leader in green and blue urea production, potentially exploring export opportunities for surplus sustainable urea.

• Integrated Fertilizer Management: Implement a holistic fertilizer management system that promotes balanced nutrient use, soil health, and minimizes environmental impact.

• Contingency Planning: Develop robust contingency plans to address unforeseen disruptions in production or supply chains.

Estimated Investment: INR 5,000 - 8,000 Crores (final investments in new capacities, R&D, and sustainability initiatives).

Total Estimated Investment (5 years): INR 43,000 - 62,000 Crores (approximately USD 5.2 - 7.5 billion at current exchange rates). This investment will be a mix of government funding, public-private partnerships, and private sector investment, incentivized by supportive policies and a clear long-term vision.

Policy Recommendations and Regulatory Reforms:

To support the successful implementation of this roadmap, the following policy recommendations and regulatory reforms are crucial:

• Long-term Fertilizer Policy: Develop a stable, predictable, and long-term fertilizer policy that provides clarity for investors and manufacturers. This policy should outline clear targets for self-reliance, feedstock diversification, and technological upgrades.

• Rationalization of Subsidies: Gradually transition from product-based subsidies to nutrient-based subsidies or direct benefit transfers to farmers. This will encourage balanced fertilizer use, reduce overuse of urea, and alleviate the government's financial burden. Any changes must be carefully managed to avoid negative impacts on farmers.

• Investment Incentives: Offer attractive incentives for private sector investment in new, energy-efficient, and environmentally friendly urea production facilities, especially those utilizing alternative feedstocks like coal gasification or green hydrogen. This could include tax breaks, interest rate subventions, and priority allocation of resources.

• Ease of Doing Business: Streamline regulatory approvals and environmental clearances for setting up and expanding fertilizer plants. Reduce bureaucratic hurdles to expedite project implementation.

• R&D and Innovation Fund: Establish a dedicated fund to support research and development in advanced fertilizer technologies, including novel production methods, efficient application techniques, and development of new fertilizer products.

• Skill Development and Capacity Building: Implement national programs for skill development in the fertilizer sector, focusing on modern plant operations, maintenance, and advanced technological processes. Collaborate with academic institutions to develop specialized courses.

• Environmental Regulations: Develop and enforce stringent environmental regulations for fertilizer production, promoting sustainable practices and minimizing pollution. Provide incentives for adopting cleaner technologies.

• Public-Private Partnerships (PPPs): Encourage PPPs for large-scale infrastructure projects, including new plant construction, pipeline networks for gas supply, and logistics improvements.

• Data-Driven Decision Making: Establish a robust data collection and analysis system for real-time monitoring of urea production, consumption, imports, and soil health. This will enable informed policy decisions and timely interventions.

These policy and regulatory measures will create an enabling environment for the domestic urea industry to thrive, attract necessary investments, and ultimately lead India towards complete self-reliance in urea production.

4. Visual Timeline and Implementation Framework

4.1. Roadmap Timeline

The following Gantt chart visually represents the key milestones and activities planned across the five-year roadmap.

India's Urea Self-Reliance Roadmap (2025-2030)

4.2. Implementation Framework

Successful implementation of this roadmap requires a robust framework with clear roles, responsibilities, and monitoring mechanisms. A multi-stakeholder approach involving government bodies, public sector undertakings, private industry, research institutions, and farmer organizations will be critical.

Key Pillars of Implementation:

• Central Steering Committee: A high-level committee, chaired by the Ministry of Chemicals and Fertilizers, with representation from other relevant ministries (Finance, Agriculture, Environment, Petroleum & Natural Gas), NITI Aayog, and industry experts. This committee will be responsible for overall strategic guidance, policy formulation, and inter-ministerial coordination.

• Project Management Units (PMUs): Dedicated PMUs for each major initiative (e.g., new plant construction, feedstock diversification, Nano Urea promotion) will be established. These units will be responsible for day-to-day execution, monitoring progress against targets, and reporting to the Central Steering Committee.

• Technology & Innovation Council: A council comprising scientists, researchers, and industry leaders to guide R&D efforts, evaluate new technologies, and facilitate technology transfer and adoption.

• Financial Task Force: A task force to identify and mobilize funding from various sources, including government budgetary allocations, public sector investments, private sector participation, and international financial institutions.

• Capacity Building & Skill Development: Collaborative programs between industry, academia, and vocational training institutes to develop a skilled workforce capable of operating and maintaining advanced fertilizer production facilities.

• Monitoring and Evaluation (M&E): A robust M&E framework with key performance indicators (KPIs) to track progress, identify bottlenecks, and ensure timely corrective actions. Regular reviews (quarterly/half-yearly) will be conducted at various levels.

• Risk Management: Proactive identification and mitigation of potential risks, including:

• Technological Risks: Unforeseen challenges in adopting new technologies; mitigation through pilot projects, expert consultation, and technology partnerships.

• Financial Risks: Cost overruns or funding shortfalls; mitigation through robust financial planning, diversified funding sources, and contingency reserves.

• Market Risks: Fluctuations in international prices or domestic demand; mitigation through strategic reserves, flexible import policies, and demand-side management.

• Environmental Risks: Non-compliance with environmental norms; mitigation through strict adherence to regulations, adoption of cleaner technologies, and continuous environmental monitoring.

• Social Risks: Farmer acceptance of new products (e.g., Nano Urea) or policy changes; mitigation through extensive awareness campaigns, field demonstrations, and farmer engagement.

This structured implementation framework, coupled with continuous monitoring and adaptive management, will ensure the effective and efficient execution of the roadmap, paving the way for India's self-reliance in urea production.

References

[1] Press Information Bureau (PIB). (2025, August 3). Empowering India's Farmers Through Strategic Fertilizer Policy. Retrieved from https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154966&ModuleId=3

[2] Economic Times. (2024, April 5). India to stop importing urea by 2025 end: Mansukh Mandaviya. Retrieved from https://m.economictimes.com/industry/indl-goods/svs/chem-/-fertilisers/india-to-stop-importing-urea-by-2025-end-mansukh-mandaviya/articleshow/109059238.cms

[3] Insights IAS. (2025, January 14). Urea Production in India: Achieving Self-Reliance. Retrieved from https://www.insightsonindia.com/2025/01/14/urea-production/

[4] The Machine Maker. (2024, April 10). No More Urea Imports for India by 2025. Retrieved from https://themachinemaker.com/news/no-more-urea-imports-for-india-by-2025/

[5] Fertilizer Daily. (2024, January 17). Bangladesh aims for urea self-sufficiency. Retrieved from https://www.fertilizerdaily.com/20240117-bangladesh-aims-for-urea-self-sufficiency/

[6] LinkedIn. (2025, May 7). Top Global Producers of Agricultural Urea: Who's Dominating the.... Retrieved from https://www.linkedin.com/pulse/top-global-producers-agricultural-urea-whos-dominating-naenf

[7] ScienceDirect. (2025, January 1). Decarbonization of urea production in India and its impact on water.... Retrieved from https://www.sciencedirect.com/science/article/pii/S0959652624038824

[8] ChemAnalyst. (2025, August 12). Understanding the Urea Supply Chain: From Production to Global.... Retrieved from https://www.chemanalyst.com/NewsAndDeals/NewsDetails/understanding-the-urea-supply-chain-from-production-to-global-distribution-38483

[9] Mongabay India. (2024, August 13). High costs, mixed results challenge nano urea use in farming. Retrieved from https://india.mongabay.com/2024/08/can-innovation-overcome-the-challenges-of-urea-dependency/