As Urea Imports Are Poised to Hit Record High, Indian Parliamentary Panel Moots Adopting Green Ammonia for Fertilisers

Why It Matters

Accelerating green ammonia reduces dependence on imported natural gas and volatile LNG, cutting subsidy burdens and aligning with climate goals. The measures also aim to secure fertilizer supply amid geopolitical risks, supporting India's agricultural productivity.

Key Takeaways

• Urea imports could reach 17 lt by May 2026.
• Panel proposes green ammonia roadmap for urea, DAP, NPK.
• Fertiliser Supply Security Fund recommended for strategic buffers.
• National Green Hydrogen Mission allocates ₹19,744 crore to 2029‑30.
• Domestic capacity expansion targets commissioning 2028‑2030.

Pulse Analysis

India’s fertilizer sector is confronting an unprecedented import surge, with urea arrivals projected to top 17 million tonnes by May 2026. This influx strains foreign‑exchange reserves and inflates subsidy outlays, especially when global natural‑gas prices spike. The heightened reliance on imported raw materials also exposes the domestic agricultural supply chain to geopolitical turbulence, prompting policymakers to seek more resilient alternatives.

Green ammonia, produced via renewable‑powered electrolysis, emerges as a strategic substitute for conventional, gas‑derived ammonia. Backed by the ₹19,744 crore National Green Hydrogen Mission, the government aims to scale clean‑hydrogen infrastructure and lower the fertilizer sector’s carbon footprint. Early pilots under the SIGHT programme have already secured 7.24 lt of green ammonia annually for 13 plants, demonstrating commercial viability and signaling a pathway toward broader adoption across urea, DAP and NPK factories.

To translate pilot success into systemic change, the committee recommends a multi‑pronged policy package: a Fertiliser Supply Security Fund for buffer stocks, an automatic, price‑linked Nutrient Based Subsidy, and clear plant‑wise targets tied to green‑ammonia integration. Coupled with the slated addition of 59.65 lt of finished‑fertilizer capacity and 44.21 lt of intermediate capacity by 2030, these steps could curtail import dependence, stabilize farmer costs, and reinforce India’s climate‑aligned self‑reliance agenda.