IFFCO Reports Slow Adoption of Nano Urea by Farmers Four Years After Launch
Slow Adoption of IFFCO’s Nano Urea Four Years After Launch
Four years following the introduction of IFFCO’s nano urea, its uptake among farmers continues to lag, with sales reported at 26.5 million bottles for FY25. Even though trial results indicated a 28.3% reduction in traditional fertiliser usage alongside a 5.7% increase in crop yields, reluctance from farmers remains a significant barrier. Recent movements towards nano-DAP and exports to Brazil and the US highlight potential growth opportunities amid ongoing subsidy reforms.
Insights from IFFCO Leadership
In June 2021, IFFCO, a cooperative, launched its nano urea in liquid form as a viable alternative to standard urea. “The uptake of nano-fertilisers has not progressed as swiftly as we anticipated,” commented U S Awasthi, managing director of IFFCO, during the company’s annual general meeting. Plans are also in the works to introduce nano zinc and copper in liquid form soon.
Comparative Sales Figures
In FY25, IFFCO sold 26.5 million bottles of nano urea and 9.7 million bottles of nano-DAP, representing increases of 31% and 118% respectively compared to the previous financial year. With a manufacturing capacity of 289.5 million bottles (each 500 ml), the cooperative has achieved sales volume equivalent to 1.2 million tonnes of conventional urea and 0.48 million tonnes of conventional DAP.
Long-Term Adoption Prospects
According to industry insiders, widespread adoption of these nano variants may still require at least three additional years. The government is prioritising the use of nano fertilisers to reduce reliance on heavily subsidised conventional varieties. Awasthi noted, “In our nano-villages program, involving 90,000 farmers, we observed a remarkable 28.3% decline in traditional fertiliser use. The sales of nano-fertilisers are gradually increasing, indicating positive traction in adoption.” He further shared that several regions using these products have experienced an average crop yield increase of 5.7%.
Addressing Farmer Resistance
Despite ongoing efforts to educate farmers about the benefits of this new technology, Awasthi acknowledged the challenge of resistance to change. “We are exploring all avenues to facilitate understanding and acceptance, but the level of success has not matched our expectations,” he added.
Expansion and Export Efforts
As part of its growth strategy, IFFCO launched nano-DAP in April 2023 to help reduce the country’s reliance on imported soil nutrients. Awasthi mentioned that 0.5 million bottles of nano fertilisers have been exported globally, with trials successfully conducted in various countries including the US and Brazil, where approvals have been obtained. A joint venture with Nanofert in Brazil is on track to establish a manufacturing plant for nano-fertiliser.
Future Production Goals
The Indian government previously aimed to escalate the annual production capacity of nano urea to 440 million bottles (each 550 ml) by 2025, equivalent to approximately 20 million tonnes of conventional urea. The liquid form of this nutrient supplies nitrogen to plants as an alternative to traditional urea, with a single 500 ml bottle being comparable to a 45 kg bag of conventional urea.
Investment and Pricing
Since commencing research on nano-fertilisers in 2017, IFFCO has invested about Rs 4,200 crore to bolster production capabilities and enhance farmer acceptance. Nano urea is priced around Rs 240 per 500 ml bottle, while nano liquid DAP costs Rs 600. In its financial performance for 2024-25, IFFCO reported a 4.5% increase in total sales turnover to Rs 41,244 crore and a 16% rise in net profit to Rs 2,823 crore over the previous fiscal year.
Subsidy Landscape
The projected fertiliser subsidy for 2025-26 stands at Rs 1.67 trillion. For urea, farmers currently pay a subsidised rate of Rs 242 per 45 kg bag, despite the actual production cost being approximately Rs 2,650 per bag. The government compensates the difference to fertiliser manufacturers. Additionally, the retail prices for phosphatic and potassic (P&K) fertilisers, including DAP, have been deregulated since 2020, following the implementation of a fixed-subsidy regime as part of the Nutrient Based Subsidy initiative announced biannually by the government.
