Urea's double life sparks political tussle in Telugu states. Diversion of urea and other fertilizers for industrial usage puts farmers and governments on edge. Shortage of urea turns a seasonal crisis in the agriculture sector and also exposes flaws in supply chain and blame game between States and Centre.
Urea is in high demand across India, including the Telugu states, primarily for agricultural purposes. However, urea is utilized for far more than just farming. Composed of ammonia, carbon dioxide, and nitrogen compounds, urea is predominantly used by farmers in granular form, applied from the early stages of crop growth.
Non-Agricultural Applications
Urea finds diverse applications in non-agricultural sectors. It is used in the manufacturing of certain plastics, glues, medicines, cosmetics, plywood, moulding powders, and mining explosives. It's also used in cattle feed and the fisheries industry. Additionally, urea is a component in 'Diesel Exhaust Fluid' which helps reduce harmful emissions from diesel vehicles. It even acts as a fire-suppressing agent in fire extinguishers to prevent fires, among many other uses.
Pricing and Diversion Concerns
For agricultural use, the central government subsidizes urea, selling a 45 kg bag to farmers for ₹266. For non-agricultural purposes, a 50 kg bag is sold for ₹1,800. These bags are specifically marked for non-agricultural use. Those with such requirements can obtain urea bags by submitting demand drafts (DDs) in the name of the Department of Fertilizers and Chemicals.
Demand and Diversion Allegations
Approximately one-tenth of the urea produced in the country is used for non-agricultural purposes. However, with increasing demand from these sectors, there's significant pressure. This time, among the reasons for urea shortage, there are allegations that subsidized urea meant for agriculture is being diverted for non-agricultural uses. Consequently, authorities in both Telugu states and across the country have intensified inspections.
Political over Urea Shortage in Telugu States
The recent urea shortage in Telangana and Andhra Pradesh has become a significant political issue, with the ruling parties and opposition groups engaging in a blame game.
In Telangana, the Congress government faces widespread protests from farmers who report long queues and inadequate supply despite official claims of sufficient stocks. The BJP, the main opposition party, has challenged the government's data and accused it of distribution failures. The state's agriculture minister has requested additional urea from the central government, highlighting the pressure from a high-demand agricultural season. Farmers have been seen standing in queues overnight and some have even resorted to extreme measures like attempting to mark their place in line with bizarre methods due to desperation.
In Andhra Pradesh, the YSRCP has announced a statewide protest against the ruling government, alleging that an "artificial shortage" is being created. The party questions why the scarcity is severe in Andhra Pradesh but not in BJP-ruled states. The state government, on the other hand, claims to have received a record allocation of fertilizers and states that there is no shortage for the current Kharif and upcoming Rabi seasons. It has warned dealers against creating artificial scarcity or selling above the Maximum Retail Price (MRP).
Urea and Other Fertilizer Usage Data
The demand for fertilizers like urea is highly seasonal, peaking during the Kharif and Rabi seasons when major crops are sown and cultivated.
Telangana - Supply vs. Requirement: For the current Kharif season, Telangana's official data shows a significant shortfall. Against a planned supply of 8.30 lakh metric tonnes (LMT) of urea, the state received only around 5.62 LMT, resulting in a deficit of over 2.69 LMT (32%).
The state’s average annual urea consumption is around 9.82 LMT during the Kharif season. Peak consumption can be higher, reaching over 10.4 LMT. The most critical months for demand are typically August and September. Other key fertilizers used include DAP (Diammonium Phosphate) and MOP (Muriate of Potash).
Andhra Pradesh - Supply Status: In contrast to Telangana's narrative, Andhra Pradesh officials claim no shortage, citing record allocations from the central government. Recent reports indicate that the state has received an additional 53,000 metric tonnes (MT) of urea, bringing the total for the Kharif season to 5.65 LMT.
For the Kharif 2025 season, the state had planned to supply a total of 16.76 LMT of various fertilizers, including 6.22 LMT of urea, 2.60 LMT of DAP, and 6.30 LMT of complex fertilizers. The state government is promoting the use of Nano Urea and Nano DAP as alternatives to conventional fertilizers to meet demand.
