India is taking significant steps to boost domestic fertilizer production, reduce reliance on imports, and promote environmentally friendly alternatives. A press release on these key initiatives and policy changes was issued on February 4, 2025.
Potassium from Molasses (PDM)
Potassium Derived from Molasses (PDM), a byproduct of the sugar industry with a minimum potash content of 14.5%, is being promoted as an alternative to imported Muriate of Potash (MOP). Recognized under the Fertilizer Control Order (1985) since 2009, PDM has been included in the Nutrient Based Subsidy scheme since Rabi 2022, with a subsidy of ₹345 per tonne for 2024-25.
Critical Minerals and Self-Sufficiency
Potash and Glauconite (a potassic mineral) have been classified as “Critical and Strategic Minerals” under the Mines & Minerals (Development and Regulation) Amendment (MMDR) Act, 2023. This classification aims to increase domestic production and achieve self-sufficiency in these crucial minerals. The MMDR Act encourages government and private sector investment across the entire value chain, emphasizing sustainable and responsible mineral management. Auctions for mineral blocks containing these critical minerals have begun, with five Glauconite blocks already successfully auctioned as of December 10, 2024.
Ammonium Nitrate Regulation and Tariff Adjustments
While the chemical sector is largely deregulated, Ammonium Nitrate manufacturing, import, export, and transportation are governed by the Ammonium Nitrate Rules, 2012. Licenses are issued by the Petroleum and Explosives Safety Organisation (PESO) based on industrial licenses granted by the Department for Promotion of Industry & Internal Trade (DPIIT). The Basic Custom Duty (BCD) on Ammonium Nitrate was increased from 7.5% to 10% in the 2024-25 budget to support domestic production. While the Directorate General of Trade Remedies (DGTR) offers protection against unfair trade practices, there are currently no pending applications for anti-dumping or countervailing duties on Ammonium Nitrate.
Promoting Organic Fertilizers
The government has approved a Market Development Assistance (MDA) program with a total outlay of ₹1451.84 crore (FY 2023-24 to 2025-26) to promote organic fertilizers. The MDA, at ₹1500/MT, supports manure production at plants under the GOBARdhan initiative, which covers various biogas/CBG schemes and programs across ministries and departments. This includes a ₹360 crore corpus for research gap funding.
Green Pesticide Technologies
The Institute of Pesticides Formulation and Technology is working to promote greener technologies and develop user- and environment-friendly pesticide formulations. The UNIDO FARM project, undertaken by HIL (India) Ltd., aims to detoxify agriculture by phasing out highly hazardous pesticides and Persistent Organic Pollutants. The project focuses on bio-pesticides like Btk, Neem, and Trichoderma spp.
These combined efforts demonstrate India’s multi-pronged approach to strengthen its fertilizer sector. This includes promoting domestic production of both conventional and organic fertilizers, reducing import dependence, ensuring access to critical minerals, and encouraging the adoption of environmentally sound agricultural practices. The focus on bio-pesticides and organic fertilizers reflects a commitment to sustainable agriculture and reducing the environmental impact of farming.
