Parliamentary Committee Observations and Recommendations on the Fertilizer Sector:
A parliamentary committee has urged the government to reclassify the fertilizer sector as ‘strategic’, criticizing its current ‘non-strategic’ status as inconsistent with India’s self-reliance goals under Atmanirbhar Bharat, especially in light of growing import dependency and food security concerns.
Parliamentary Committee Observations and Recommendations on the Fertilizer Sector:
- Fertilizers are crucial for agricultural productivity and food sovereignty. The panel noted that India’s high import dependence (25% for urea, 90% for phosphates, and 100% for potash) makes strengthening fertilizer PSUs essential for domestic production, price stability, disaster resilience, and long-term food security.
- The Department of Investment and Public Asset Management (DIPAM) denied strategic status to the fertilizer sector despite the sector’s critical role in food security.
- Public Sector Undertakings (PSUs) contribute only ~25% of urea and ~11% of non-urea fertilizer production.
- The private sector dominates the industry, contributing over 57% of total production (2023–24).
- The panel noted that PSUs serve as price stabilizers, particularly for small and marginal farmers through government-subsidized distribution, underscoring the need to treat the fertilizer sector as strategic.
Recommendations :- Classify the sector as ‘strategic’ to attract sustained investment and ensure alignment with Atmanirbhar Bharat goals.
- Launch a dedicated mission to upgrade technology, diversify products, and adopt sustainable practices in public sector units.
- The committee noted that revived fertilizer PSUs have achieved a successful turnaround, with the reopening of closed units contributing 7.62 MT to annual urea production.
