Urea Production

Syllabus: Agriculture

Source: IE

Context: India has witnessed a surge in domestic urea production with significant investments in new plants to achieve self-reliance under the government’s Atmanirbhar Bharat initiative.

India’s Urea Capacity and Production:

• Capacity: India’s current urea production capacity stands at over 31.4 million tonnes (MT) as of 2023-24, up from 22 MT in 2011-12.

• Reduction in Imports: Urea imports have declined to 7 MT in 2023-24 from a peak of 9.8 MT in 2020-21.

• Major Plants: Key contributors include six newly commissioned plants, such as Hindustan Urvarak & Rasayan Ltd (HURL), Chambal Fertilisers, and Matix Fertilisers.

Recent Growth in Urea Production in India:

• New Plants: Six greenfield plants have added 7.55 MT of urea production since 2019, with another plant at Talcher (Odisha) under development.

• Energy Efficiency: New plants are more energy-efficient, requiring about 5 GCal/tonne, compared to older plants needing 5.5-6.5 GCal/tonne.

• Strategic Locations: New facilities are focused in eastern and northern India, such as West Bengal, Uttar Pradesh, and Bihar, addressing regional agricultural demands.

Significance of Urea Production in India:

• Agricultural Dependence: Supports increased agricultural productivity and food security.

• Reduced Imports: Saves foreign exchange and reduces dependence on volatile international markets.

• Employment Generation: Creates jobs and promotes economic activity in rural areas.

• Environmental Impact: Energy-efficient technologies in new plants reduce carbon footprints.

• Balanced Development: Promotes industrial growth in underdeveloped regions of eastern India.

Schemes for Urea Production in India:

1. 1.Nutrient-Based Subsidy (NBS): Encourages balanced fertilisation and optimises subsidy allocation for nitrogen, phosphorus, and potassium.

1. 1.Neem-Coated Urea: Introduced in 2015 to curb diversion for non-agricultural uses and improve nitrogen use efficiency.

1. 1.Nano Urea: Launched in 2021 to reduce overuse of conventional urea and enhance crop productivity.

1. 1.Energy Efficiency Norms: Mandated adoption of energy-efficient technologies for new urea plants.

1. 1.Atmanirbhar Bharat Initiative: Boosts domestic manufacturing capacity to reduce reliance on imports.

Challenges:

• High Production Costs: Domestic production costs remain higher than import costs due to energy prices.

• Environmental Concerns: Excessive urea application leads to soil degradation and water pollution.

• Overdependence on Subsidies: Heavy government subsidies strain fiscal resources.

• Diversion Issues: Urea is often diverted for industrial use despite neem coating measures.

• Limited Technological Adoption: Slow adoption of advanced farming practices hampers balanced fertilisation efforts.

Way Ahead:

• Encourage Balanced Fertilisation: Promote use of Nano Urea and other eco-friendly alternatives.

• Boost Technological Advancements: Enhance energy efficiency and adopt advanced technologies in urea production.

• Strengthen Regulation: Implement stricter measures to curb diversion and ensure targeted subsidy delivery.

• Promote Regional Balance: Expand production facilities in underdeveloped regions to meet local agricultural needs.

• Public Awareness: Conduct campaigns for farmers to reduce overuse and ensure sustainable agriculture practices.

Conclusion:

India’s efforts to achieve self-reliance in urea production highlight the significance of domestic manufacturing, energy efficiency, and balanced fertilisation. While challenges remain, technological advancements and robust regulations can transform urea production into a sustainable and economically viable endeavour for the nation.

Insta Links:

• First-urea-and-now-DAP-high-use-of-subsidised-fertilisers

• With reference to chemical fertilizers in India, consider the following statements: (UPSC-2020)

• At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. Ammonia, which is an input of urea, is produced from natural gas. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.

• At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.

• Ammonia, which is an input of urea, is produced from natural gas.

• Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.

Which of the statements given above is/are correct?

• 2 and 3 only

• 1, 2 and 3

Answer: b)