Maarg Manthan · Topic 13.6

Fertilizer Industry: Production of Nitrogenous, Phosphatic and Potash Fertilizers

Geography › Industry · Topic 13.6

The fertilizer industry makes plant nutrients in three main groups: nitrogenous (urea, ammonium sulphate), phosphatic (superphosphate, DAP) and potash. Nitrogen fertilizers are made from air and natural gas, phosphates from rock phosphate and sulphuric acid, and potash is mined. India is the second largest consumer of fertilizer in the world, and imports a large part of its phosphate and potash needs.

5 min read · UPSC Prelims · Geography · Industry

At a Glance

Groups Nitrogen, phosphate, potash (N, P, K)
Main nitrogen fertilizer Urea, 46 per cent nitrogen
Raw materials Natural gas, rock phosphate, potash salts
First Indian plant Sindri, 1951
Import need Potash fully, phosphate largely
Exam link UPSC Prelims, Geography: Industry

Where Does It Fit?

This topic follows the chemical industry and takes its most important farm-linked branch. It links to the soil and crop topics of agriculture and to natural gas pipelines in the macro on energy. Previous topic: Chemical Industry: Classes and the Heavy Chemical Industry. Next topic: Location Theories of Industry (Weber’s Least Cost Theory).

How Are the Three Kinds of Fertilizers Made?

Group	Raw material	Process and products
Nitrogenous	Atmospheric nitrogen, natural gas or naphtha for hydrogen	Ammonia by the Haber process; then urea (46 per cent N), ammonium sulphate, ammonium nitrate
Phosphatic	Rock phosphate and sulphuric acid	Single superphosphate (SSP), diammonium phosphate (DAP, 18-46-0), NPK complexes
Potassic	Potash salts mined as sulvinite, carnallite, sylvite	Muriate of potash (MOP), sulphate of potash; mostly mined and refined

Ammonia is the base of nitrogen fertilizer. Natural gas gives hydrogen, which is combined with nitrogen from air at high pressure. Gas is the cheapest feedstock, so plants use pipelines such as the Hazira-Bijaipur-Jagdishpur line, which began in the 1980s.

Where Are Fertilizers Made and Found?

Nitrogen: made in plants near gas fields, refineries or pipelines, and near markets. Large producers are China, India, the United States, Russia and Indonesia.
Phosphate: rock phosphate comes from Morocco (the largest reserves), China, the United States, Russia and Jordan. Sulphur is needed too, so phosphate plants stand on the coast or near sulphur supplies.
Potash: Canada (Saskatchewan) is the largest producer, followed by Russia, Belarus, China and Germany. India has no large commercial source, so it imports all its muriate of potash.
India: the first large plant was at Sindri in Jharkhand (1951), followed by Nangal in Punjab, Trombay in Mumbai, Namrup in Assam, Gorakhpur in Uttar Pradesh, Talcher in Odisha and Ramagundam in Telangana. Gujarat has large gas-based plants at Kandla, Hazira, Kalol and Bharuch. Public companies include the Fertilizer Corporation of India and National Fertilizers Limited, while cooperatives such as IFFCO and KRIBHCO are major producers.
Import dependence: India imports potash fully, much of its DAP and rock phosphate (from Morocco and other countries), and also LNG for urea. This makes the farm sector sensitive to world prices.

What Is the Policy for Fertilizers in India?

Subsidy: the government controls the price of urea and pays the difference as subsidy to producers. For phosphate and potash, the Nutrient Based Subsidy scheme, started in 2010, fixes subsidy per kilogram of nutrient.
Neem coating: since 2015 all domestic urea has been neem-coated to slow the release of nitrogen and reduce diversion to industry.
New urea policy: a 2015 policy aims to raise output and cut gas use, and the revived plants at Gorakhpur, Sindri, Barauni, Ramagundam and Talcher have been restarted.
Nano urea: a liquid nano formulation, introduced by IFFCO in 2021, was developed to use less nitrogen and cut costs.
Balanced use: overuse of urea has lowered the N:P:K balance and harmed soil health. Soil Health Cards, started in 2015, and schemes for organic and natural farming promote balanced use. A scheme named PM-PRANAM, from 2023, rewards states for reducing chemical fertilizer.
Issues: large subsidy bill, imports, water pollution through run-off and greenhouse gas from nitrous oxide.

Consumption and import numbers change every year, so check the latest figures.

Why Is Balanced Fertilizer Use Important?

Nitrogenous fertilizers: these drive leaf growth and yield, and they are the largest group by quantity. Crops use only part of the nitrogen applied, and the rest is lost to water and air, so efficient forms such as neem-coated and nano urea matter.
Phosphate and potash: phosphorus helps roots and grain, and potassium helps water balance and disease resistance. A low use of these compared with nitrogen shows an imbalance, found in many states of north India.
Soil health: long use of only urea reduces organic carbon and micronutrients such as zinc and sulphur, and lowers response of crops. Organic manure, green manure and bio-fertilizers help restore the soil.
Environment: run-off of nitrogen and phosphate into lakes causes algal bloom, called eutrophication, and fertilizer use releases nitrous oxide, a potent greenhouse gas.

Why Is This Topic Important?

Groups N, P and K
Base Gas-based ammonia
Policy Subsidy, neem coating, nano urea

What Came Next?

The next topic describes location theories of industry, including Weber’s least cost theory. Next topic: Location Theories of Industry (Weber’s Least Cost Theory).

Key People and Terms

Haber process Making ammonia from nitrogen and hydrogen
Urea Fertilizer with 46 per cent nitrogen
DAP Diammonium phosphate, 18-46-0
MOP Muriate of potash
Neem coating Slows nitrogen release
NBS Nutrient based subsidy

Exam Corner

Points to Remember

Urea has 46 per cent nitrogen.
Sindri was the first big plant, 1951.
India imports all its potash.
Neem coating became compulsory in 2015.
Morocco has the largest phosphate reserves.

Do Not Confuse With

Urea and DAP Nitrogen only versus nitrogen and phosphate
Haber and contact process Ammonia versus sulphuric acid
Nano and neem-coated urea A new liquid form versus a coating on prills

Memory Hook

Gas to ammonia to urea, rock and acid to DAP, mined potash: N, P, K make the farm’s meal.

Mains Angle

Questions ask about the distribution of the fertilizer industry in India and the issues of subsidy and imbalance. These points add depth.

Feedstock Gas pipelines and imports
Subsidy Urea control and NBS
Soil Imbalance of N, P, K

A Question You May Face

An original practice question, not a past paper question.

“Describe the distribution of the fertilizer industry in India and discuss the issues relating to import dependence and subsidy.”

How to Answer

Types N, P and K and their raw material.
Plants Sindri, Gujarat, gas-based.
Policy Subsidy and neem coating.
Issues Imports, imbalance, pollution.

GS Relevance

Prelims: types of fertilizers, raw materials, plants, subsidy and policy. GS Paper 3: industry, agriculture inputs, food security.

Frequently Asked Questions

What are the three main types of fertilizers?

The three main types are nitrogenous fertilizers such as urea and ammonium sulphate, phosphatic fertilizers such as superphosphate and diammonium phosphate, and potassic fertilizers, mainly muriate of potash. Plants need nitrogen, phosphorus and potassium in large amounts, which is why fertilizer grades are written as N, P and K ratios.

How is urea manufactured?

Urea is made by first producing ammonia from nitrogen of the air and hydrogen from natural gas or naphtha by the Haber process, and then reacting the ammonia with carbon dioxide at high pressure. It contains 46 per cent nitrogen, the highest among solid nitrogen fertilizers, and most Indian plants use natural gas.

Why does India import potash?

India imports all its potash because it has no large commercial reserves of potash salts. Muriate of potash is bought mainly from Canada, Russia, Belarus and other countries. This makes the supply and price of potash depend on world markets and on trade policy of exporting countries.

What is neem-coated urea?

Neem-coated urea is ordinary urea coated with neem oil, which slows the conversion of nitrogen in the soil, so that crops use it better and less is lost. Since 2015 all domestically produced urea sold in India has been neem coated, which also makes it harder to divert for industrial use.

Where was the first large fertilizer plant of India set up?

The first large fertilizer plant of India was set up at Sindri in Jharkhand, which began production in 1951 using coal as the raw material. Later plants shifted to naphtha and natural gas, with large units at Nangal, Trombay, Gorakhpur, Kandla and Hazira, while the Sindri plant was closed and a new unit was later revived.

PYQ Practice — Statement Analysis

1 Urea contains 46 per cent nitrogen.

True

It has the highest nitrogen content of solid fertilizers.

2 India has large commercial reserves of potash.

False

It imports all its muriate of potash.

3 Ammonia is made by the Haber process.