A new fertiliser policy should cover ways and means to achieve self-sufficiency. At the same time, we need to set up joint ventures outside in gas producing countries so that fertiliser is imported and gas from India is diverted for other purposes

The weather predictions from Indian Meteorological Department (IMD), actual erratic pattern of monsoon that usually happens every year and the lurking fear of an El Nino have all had a mind boggling effect on one and all this year. Some parts of North and East India face drought conditions while many others have been hit by heavy rains and floods.

In some parts, while rains damaged standing crop, others like Punjab and Haryana had late rains, thus threatening cotton and paddy crops. Press reports show that apart from some of the affected areas as above, monsoon delays have pushed 20 of the 75 districts in Uttar Pradesh (UP) to drought conditions. Odisha's large scale flooding due to heavy rains has affected 23 districts and yet RS Gopalan, Agriculture Director, appears to be confident and is reported to have stated that they "expect above average yield". And the rain deficit in Bihar, with some floods in the north is expected to lead to a fall in production of oil seeds and pulses. Jharkhand, on the other hand, after a poor early monsoon rains had better showers in August, resulting in better paddy output this season.

All these up and down factors - vagaries of the monsoon effect - have a direct repercussion on the need and use of fertilisers. So, let's take a look at the state of fertiliser industry in the country.

As per the directive of the government, urea units have been receiving gas from Reliance Industries Ltd (RIL) to meet their needs, which, in the past couple of years, have been falling drastically, due to lower output of gas. To support farmers and to ensure continued agricultural production, the government has been subsidising fertiliser industry, which is likely to reach a staggering Rs90,000 crore in 2014-15. Domestic production of urea, for instance, has been around 22 million tonnes (mt), while the demand is around 29 mt, thus necessitating the import of 8 mt per year. Indigenous production cannot be increased due to inadequate supply of gas. Additionally, India imports about 3.5 million tonnes of potash from Russia/ Belarus.

More importantly, the use of fertilisers, both bio-fertiliser and micro-nutrients and the ratios of use, has also been haphazard. It is well-known that in order to maintain soil health and to obtain optimum benefit of fertiliser application the farmer has to use all the three nutrients, generally classified as NPK or nitrogen, phosphate and potash.

According to international practice, the most ideal NPK fertilizer ratio is 4:2:1 but in actual practice in India has been found vary from 4:2:1 to go as high as 23:2:1 and varying from state to state, depending upon what they grow! Such a reckless mix may increase the crop yield in some areas but now there is serious concern that this may lead to increased incidence of cancer.

The fertiliser industry is now being studied in detail and a road map to reach self-sufficiency is being prepared by Ananth Kumar, the Union Minister for Fertilizer and Chemicals. His plans are expected to include provisions for revival of defunct plants, such as those at Talcher and Ramagundam. Additionally, press reports indicate that proposals are being prepared to set up fertiliser units along the proposed Jagdishpur-Haldia natural gas grid pipe line.

A national fertiliser policy that will cover ways and means to achieve self-sufficiency would be a welcome change and in the long run may reduce our dependence upon imports. It is hoped that this policy will also cover the urgent and imperative need to "educate" farmers in the right use of NPK. Would it be workable for establishing a composing unit that would receive all the three nutrients and then prepare single packaged NPK in right ratios, so as to eliminate the use of fertiliser by wrong combinations?

It would be ideal if the new policy outlines proposals for joint ventures outside in gas producing countries, such as Qatar, Oman, United Arab Emirates (UAE), Iran, Nigeria and Russia, so that the fertiliser is imported and gas from India is diverted for other purposes. This does not mean we should close the existing units, but we should refrain from setting up new ones, unless, the overseas joint venture partners from Qatar, Iran and other countries, offer to ship the gas as working capital?

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)