Central Idea

The recent launch of “Urea Gold,” a fortified fertiliser by Rashtriya Chemicals and Fertilizers Ltd (RCF), has sparked interest as it combines urea with sulphur to enhance nitrogen use efficiency (NUE).
It seeks to tackle challenges of escalating urea consumption and declining agricultural efficiency.

What is Urea Gold?

Composition: “Urea Gold” blends urea with sulphur to create a fortified fertiliser aimed at improving NUE and crop performance.
NUE Enhancement: The fortified blend ensures gradual nitrogen release, sustaining plant health and potentially reducing fertiliser application frequency.

Urea Consumption Surge: Urea consumption has risen from 26.7 million tonnes to 35.7 million tonnes between 2009-10 and 2022-23, making it India’s predominant fertiliser choice.
Import Dependency: Domestic urea production relies heavily on imported natural gas. India’s annual consumption trails only China’s, where coal-based production prevails.
Declining NUE: Only around 35% of nitrogen applied through urea benefits crops, raising concerns about resource wastage and increased fertiliser application.

Coating Strategy: Fortified fertilisers entail coating primary nutrients (N, P, K) with secondary nutrients (S, calcium, magnesium) and micronutrients (zinc, boron, manganese, etc.).
Enhanced Benefits: Coated fertilisers act as “carrier products” for secondary and micronutrients, thereby increasing their N and P use efficiency and ensuring controlled nutrient release.
Innovation by Yara International: The “Procote” technology facilitates micronutrient coating, demonstrating improved fertiliser efficacy.
Efficacy Confirmation: The trials substantiated amplified paddy and wheat yields through micronutrient-coated fertilisers, potentially mitigating NUE concerns.

Pricing Complexities: Existing subsidies for coated fertilisers like zincated urea and boronated DAP may not incentivise companies to promote fortified products.
Farmer Adoption Hurdles: Discrepancies in pricing between fortified and non-fortified fertilisers have deterred farmers from embracing coated options.
Optimal Implementation: Advocates suggest factory-level coating to ensure uniform nutrient distribution and user convenience. Freeing maximum retail prices (MRPs) for coated fertilisers could bolster adoption.
Striking Pricing Balance: Since traditional fertilisers receive substantial subsidies, fortified product premiums must remain reasonable to encourage affordability.

Amidst the challenges of dwindling NUE and escalating urea consumption, the introduction of “Urea Gold” and fortified fertilisers holds promise for enhancing agricultural efficiency.
The journey to successful implementation necessitates addressing pricing discrepancies and distribution intricacies.