calender_icon.png 7 September, 2025 | 4:50 AM

Why Urea Shortage?

07-09-2025 12:00:00 AM

metro india news  I hyderabad

Telangana’s farm sector is reeling under a severe urea shortage during this critical Kharif season threatening the livelihoods of millions of farmers and sparking widespread protests across the state. The shortfall in urea supply, a vital nitrogen-based fertilizer, has disrupted cultivation at a pivotal time when crops like paddy, maize, and cotton require timely nutrient application to ensure healthy yields. The crisis has also ignited a fierce political blame game, with the state and central governments pointing fingers at each other, leaving farmers caught in the crossfire.

According to official data, Telangana’s urea requirement for the 2025 Kharif season is estimated at 10.48 lakh metric tonnes (LMT), driven by a significant expansion in cultivated areas. Paddy cultivation alone has surged to 55 lakh acres in 2025, up from 32 lakh acres in Kharif 2024, a 72.36% increase over normal levels, fuelled by improved irrigation from projects like the Sriram Sagar Project and government incentives for rice production. Maize and cotton cover 14 lakh acres and 12.5 lakh hectares, respectively, further amplifying the demand for urea. However, the Union Ministry of Chemicals and Fertilisers allocated only 9.8 LMT for the season, with 8.3 LMT earmarked for April to August. By mid-August, only 5.6 LMT had been supplied, resulting in a shortfall of 2.7 LMT—a 32% deficit that has left farmers scrambling.

The shortfall has hit hardest during August and September, when urea consumption peaks at 3.22 LMT and 2.66 LMT, respectively, due to critical crop growth stages like paddy transplantation and tillering. As of September 3, the state’s urea stock stood at a mere 0.40 LMT against a required 4.24 LMT, exacerbating the crisis. For August alone, Telangana was allocated 1.7 LMT, including 1.31 LMT from domestic sources and 0.39 LMT from imports, but only 1.31 LMT was delivered, with a significant portion delayed due to logistical bottlenecks.

Farmers across districts like Mahabubabad, Nalgonda, Suryapet, and Sangareddy are facing dire consequences. In Gudur mandal, Mahabubabad, farmers have queued for days, braving rains, only to return empty-handed. 

One woman farmer, speaking to local media, expressed her frustration: “I’ve been coming to the center for ten days, but the officials keep delaying us.” In Pulkal village, Sangareddy, farmers protested against shopkeepers charging Rs 40 extra per bag and supplying inadequate liquid urea instead of granular urea. Such black-marketing has become rampant, with some farmers forced to buy at inflated prices from private sources, further straining their finances.

The crisis stems from multiple factors. Domestically, production disruptions at key plants like Ramagundam Fertilisers and Chemicals Limited (RFCL), which supplies nearly half of Telangana’s indigenous urea, have been a major bottleneck. RFCL, allocated 65,000 metric tonnes for August, delivered only 24,000 metric tonnes due to a 78-day shutdown between April and August caused by gas pipeline leaks and equipment malfunctions. The Talcher Fertiliser Plant in Odisha and Nagarjuna Fertilisers and Chemicals have also operated below capacity or ceased production entirely, compounding the shortage.

On the import front, global supply chain disruptions have played a significant role. India, which relies on imports for 15-30% of its urea needs, faced challenges due to export restrictions from China, rising natural gas prices, and conflicts like the Russia-Ukraine war and Iran-Israel tensions, which disrupted shipping routes in the Red Sea. Although China recently eased export curbs, potentially freeing 2-3 million tonnes, delays in negotiations and rising global prices—FOB China hit $385 per tonne in July 2025, up 12% yearly—have hindered timely imports.

The state government, led by Chief Minister A. Revanth Reddy, has accused the central government of neglecting Telangana’s needs. Reddy, along with Agriculture Minister Tummala Nageswara Rao, has written multiple letters to Union Minister for Chemicals and Fertilisers J.P. Nadda, urging immediate action. On August 20, the Centre approved an additional 50,000 metric tonnes of urea, of which 35,000 metric tonnes have arrived, but transportation delays have prevented it from reaching distribution centers. Rao has requested an additional 2.38 LMT for September to bridge the gap, emphasizing that current stocks of 30,000 metric tonnes are insufficient against daily sales of 9,000-11,000 metric tonnes.

The opposition Bharat Rashtra Samithi (BRS) and Bharatiya Janata Party (BJP) have countered with their own accusations. BRS leader K.T. Rama Rao highlighted the plight of farmers queuing overnight, while BJP leaders, including Union Minister G. Kishan Reddy, claimed the Centre supplied 10.02 LMT for the 2024-25 Rabi season, exceeding Telangana’s demand, and blamed the state for poor distribution. However, official data contradicts claims of over-supply, showing Telangana’s urea consumption in 2024-25 at 20.08 LMT against a requirement of 20.2 LMT, indicating no excessive use.

The crisis threatens a 10-15% yield loss, potentially slashing Telangana’s projected output of 92 lakh tonnes of rice, 16 lakh tonnes of maize, and 48 lakh bales of cotton. This could lead to billions in economic losses, with smallholder and tenant farmers bearing the brunt due to limited access to alternatives. Experts warn that nutrient deficiencies, particularly nitrogen, weaken crops, making them susceptible to pests and reducing quality, which could spike food prices and disrupt supply chains for rice, dairy, and textiles.

To address the crisis, experts and officials suggest short- and long-term solutions. Immediate measures include expediting imports from diverse sources like Southeast Asia and Africa and ensuring leak-free distribution to district godowns. Long-term strategies involve promoting nano urea, which is eco-friendly and cost-effective, and reducing the price gap between urea (Rs 266 per 45 kg bag) and complex fertilizers (Rs 1,500+ per bag) to balance usage. The state is also urged to adopt the Centre’s PM-PRANAM scheme to promote organic farming and reduce reliance on chemical fertilizers.

As the Kharif season nears its peak, the urgency to resolve the urea crisis cannot be overstated. With 70.6 lakh farmers affected and protests intensifying, both state and central governments must move beyond political sparring to ensure timely supplies. The stakes are high—not just for Telangana’s agricultural output but for the food security and economic stability of the region.