Seeds, Soil and Machines: India's Farm Inputs
Urea, DAP and the Nutrient Imbalance
How cheap urea encourages farmers to overuse nitrogen, why the ideal NPK ratio matters for soil, and how pricing distorts fertiliser use.
Plants need three main nutrients: nitrogen (N), phosphorus (P) and potassium (K).
The ideal ratio
Agronomists often cite a 4:2:1 ratio of N:P:K as a general benchmark for Indian soils.
The imbalance
India’s actual use is heavily skewed towards nitrogen, with ratios sometimes far above the benchmark, especially in states like Punjab and Haryana.
Why
- Urea (nitrogen) has a fixed, heavily subsidised price, around 242 rupees for a 45-kg bag, unchanged for years.
- Phosphorus and potassium fertilisers like DAP and MOP get fixed subsidies under Nutrient Based Subsidy (NBS) but their prices vary more, so they’re relatively costlier.
Farmers use more of the cheapest nutrient.
Consequences
- Soil degradation and falling response to fertilisers.
- Water pollution from nitrate runoff.
- Nitrous oxide emissions.
- Higher subsidy bills.
Diversion
Cheap urea is sometimes diverted to industry. Neem-coated urea, made mandatory in 2015, reduces diversion and slows nitrogen release.
A farmer applies extra urea because it's cheap, hoping for greener plants. Over years, his soil's health declines and yields stagnate despite more fertiliser.
Imbalanced use harms soil and reduces returns.
- Plants need nitrogen, phosphorus and potassium in balance.
- Cheap urea encourages nitrogen overuse.
- Imbalance degrades soil and pollutes water.
- Neem-coated urea reduces diversion.
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