Friday’s Insider: Nano-urea — too far to be perfect

This week, the Department of Fertilizers of India (DOF) authorized National Fertilizers Limited (NFL) to issue a new urea import tender. While the market speculates whether India will import any urea in 2025, I would like to turn my attention once again to nano urea, which has been touted as one of the potential solutions for achieving India’s urea self-sufficiency by 2025.

First, let’s recall some figures. India consumes 35 million tonnes of urea per year. Domestic production has increased from 22.5 million tonnes in 2014 to 31 million tonnes in 2024. However, this has led to environmental degradation and significant greenhouse gas emissions. Some reports highlight that two-thirds of the urea applied in fields is lost to the environment, contributing to water and air pollution, soil degradation, and climate change. Urea production, heavily reliant on fossil fuels, emits significant greenhouse gases, and the use of urea in agriculture releases nitrous oxide, a potent greenhouse gas.

To address these issues, the government has introduced initiatives such as promoting organic fertilizers, sulfur-coated urea (Urea Gold), and nano urea. However, experts emphasize the need for a gradual reduction in urea use.

So, what is nano urea? Nano urea was invented by chemical scientist Ramesh Raliya and is supported by the Indian Farmers Fertiliser Cooperative Limited (IFFCO), a multi-state cooperative society that manufactures and promotes fertilizers. The liquid fertilizer is designed to meet the nitrogen needs of crops. Unlike conventional granular urea, which is applied directly to the soil, nano urea is sprayed directly onto crops, with its ultra-small particles penetrating plant tissues to deliver nutrients. Available in 500 ml bottles, the government claims that nano urea can increase crop productivity by up to 8%.

IFFCO received a patent for nano urea in 2023, and the government is actively promoting its use. In 2021, IFFCO signed a Memorandum of Understanding (MoU) with public sector fertilizer companies to facilitate technology transfer and expand production. On 30th July this year, the Union Minister of State for Chemicals and Fertilisers, Anupriya Patel, informed the Rajya Sabha that six nano urea plants, with a combined annual capacity of 2.662 billion bottles, have been established in the country. The government is also encouraging other PSUs to establish additional nano urea plants.

But is nano urea as effective as claimed? Some feedback from Indian farmers suggests otherwise. Firstly, farmers point to the high cost of labor. Whereas one laborer is needed to apply conventional urea on one acre of farmland, four laborers are required to spray the same area with nano urea. Additionally, farmers report that while conventional urea achieves the desired results with a single application, they need to apply nano urea three times to achieve the same yield, effectively tripling the fertilizer cost.

Rajiv Sikka, a senior soil chemist at Punjab Agricultural University (PAU), who has participated in several studies on nano urea, argues that nano urea is costlier and less effective over time compared to conventional urea.

According to Sikka, IFFCO introduced nano urea to the market in 2019, claiming that spraying two 500 ml bottles—one at the maximum tillering stage (30 days after sowing) and another at the pre-flowering stage (around 50 days after sowing)—on crops like rice and wheat could reduce the need for conventional granular urea by 50%. Typically, farmers apply two bags of conventional urea per acre, and IFFCO suggested that using nano urea could cut that in half. However, Sikka’s research, conducted over three years on crops such as rice and wheat, reveals a different story. The findings show a consistent yield reduction of around 20% in rice and wheat when using nano urea. Additionally, the protein content in these crops dropped by 13-20%. Sikka notes that the yield decline was cumulative, worsening each year as less nitrogen was applied to the soil, leading to progressive nitrogen depletion.

Moreover, Sikka highlights the financial implications of using nano urea. While a standard 45 kg bag of conventional urea costs Rs. 265, a 500 ml bottle of nano urea is priced at Rs. 250. Farmers need two bottles per application of nano urea, costing Rs. 500, and at least three laborers to spray it, adding another Rs. 1,500 in labor costs.

As it appears, nano urea is not a magic solution that will allow India to become urea-independent. I have said it before, and I will repeat it now: the key is education—education on using any fertilizer wisely.

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About the Author of “Friday’s Insider”: Ilya Motorygin is the co-founder of GG-Trading and brings 30 years of experience to the fertilizer industry. Renowned for his comprehensive problem-solving skills, Ilya expertly manages deals from inception to completion, overseeing aspects such as financing, supply chains, and logistics.