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State urges Centre to rationalise price of fertilizers for balanced use

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India Latest News: Top National Headlines Today & Breaking News | The Hindu

August 27, 2026
State urges Centre to rationalise price of fertilizers for balanced use

The Telangana government has urged the Centre to rationalize fertilizer prices to curb the over-reliance on subsidized urea. This move aims to prevent soil degradation and improve crop quality by encouraging balanced nutrient application.

Addressing the Fertilizer Imbalance in Telangana

The Telangana State Government has formally requested the Union Ministry of Chemicals and Fertilizers to undertake a comprehensive rationalization of fertilizer prices, specifically targeting DAP (Diammonium Phosphate), complex fertilizers, and urea. This intervention is driven by a growing concern over the distorted market dynamics that currently incentivize farmers to prioritize urea over other essential nutrients. Because urea is heavily subsidized, its artificially low cost compared to alternatives has created a significant price gap that dictates usage patterns, often overriding the actual agronomic requirements of the soil.

The Economic and Agronomic Consequences

Agriculture Minister Tummala Nageswara Rao highlighted that the current price disparity is driving a crisis of misuse. When farmers opt for urea simply because it is the most affordable option, they inadvertently engage in imbalanced fertilization. This indiscriminate application is not merely an economic issue; it is a direct threat to soil health. The over-reliance on nitrogenous fertilizers like urea at the expense of phosphorous and potassium-based complexes disrupts the soil's nutrient profile, leading to long-term degradation that could diminish the land's productive capacity for future generations.

Impact on Marketability and Quality

Beyond soil health, the qualitative impact on produce is a major concern for the state. Minister Rao noted that the excessive use of urea has a measurable effect on the quality of the harvested crops. In an era where overseas markets have stringent quality standards and residues thresholds, produce grown under these conditions faces a higher risk of being rejected or devalued. By rationalizing prices, the state hopes to nudge farmers back toward a more balanced application of fertilizers, thereby ensuring that Telangana’s agricultural output meets the high standards required for competitive international trade.

Escalating Consumption Trends

The scale of the problem is evidenced by the dramatic rise in urea consumption within the state. According to government data, urea usage in Telangana has surged to approximately 20.7 lakh tonnes for the 2025-26 period, a significant jump from the 14 lakh tonnes recorded in previous cycles. This rapid escalation suggests that if the current pricing structure remains unchanged, the trend of over-application will likely continue, further straining both the state's agriculture sector and the central subsidy budget.

Future Outlook and Policy Implications

The request for rationalization represents a proactive policy shift toward sustainable agriculture. By aligning the costs of DAP and complex fertilizers with that of urea, the Centre has an opportunity to influence farmer behavior without resorting to restrictive mandates. If implemented, this policy could serve as a model for other states struggling with similar imbalances. Moving forward, the success of this initiative will depend on the Centre's willingness to adjust the subsidy architecture to prioritize soil longevity and produce quality over short-term cost-reduction measures.

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