Government Approves Direct Use of Anhydrous Ammonia in Agriculture to Reduce Urea Shortage

Key Highlights

• Government approves direct use of anhydrous ammonia in agriculture for the next three years.

• Anhydrous ammonia contains 82% nitrogen, compared to 46% in urea.

• India could become the fourth country after the US, Canada, and Australia to adopt this practice.

• ICAR trials during the 2025-26 Rabi season showed encouraging results but highlighted the need for better application methods.

• India imports nearly 10 million tonnes of urea annually, and the initiative could reduce import dependence in the future.

In a major move to address recurring urea shortages and reduce India's dependence on fertilizer imports, the Central Government has approved the direct use of anhydrous ammonia in agriculture. The decision is expected to improve nitrogen availability for crops, especially during the peak sowing season when urea demand remains high.

The approval allows any eligible production unit to manufacture anhydrous ammonia for agricultural use over the next three years, according to a government notification issued on July 23. If implemented successfully, the initiative could transform fertilizer use in India and make nutrient management more efficient.

Government Takes a Big Step to Tackle Urea Shortages

Farmers across the country often struggle to get enough urea during the sowing season due to rising demand, limited stock availability, and long queues at fertilizer outlets. To address this challenge, the government has approved the use of anhydrous ammonia as a direct nitrogen fertilizer.

Unlike conventional urea, which contains 46% nitrogen, anhydrous ammonia contains 82% nitrogen, making it one of the most concentrated nitrogen fertilizers available. This higher nitrogen content means farmers could potentially use smaller quantities while meeting crop nutrient requirements.

India Could Become the Fourth Country to Adopt the Practice

If the initiative proves successful, India will become the fourth country in the world to use anhydrous ammonia directly in agriculture after the United States, Canada, and Australia.

The move reflects the government's efforts to modernize fertilizer use and improve nutrient efficiency. However, experts believe that successful implementation will require careful planning because anhydrous ammonia is stored under pressure and needs proper handling to avoid gas leakage and safety risks.

Biggest Challenge Is Building the Required Infrastructure

Industry experts say that government approval alone will not ensure success. The real challenge lies in creating the infrastructure needed for safe and effective field application.

Currently, urea manufacturing plants generate around 2,000 to 6,000 tonnes of surplus ammonia every year, which has traditionally been sold for industrial purposes. Under the new plan, this surplus ammonia could be supplied directly for agricultural use.

However, unlike urea, anhydrous ammonia must be injected beneath the soil using specialized equipment. India currently lacks large-scale infrastructure for underground ammonia injection, making investment in storage, transportation, safety systems, and application machinery essential before widespread adoption.

ICAR Trials Show Encouraging Results

The technology has already been tested during the 2025-26 Rabi season at 13 institutes of the Indian Council of Agricultural Research (ICAR).

The trials found that using green ammonia in directly seeded rice improved plant growth and crop greenness in several locations compared to conventional urea application. These results indicate that ammonia has the potential to become an effective alternative nitrogen source.

However, researchers also observed uneven crop growth in some fields because ammonia distribution was not uniform. This highlights the need for further research, improved application techniques, and standardization before large-scale implementation.

Green Urea Project Also Moving Forward

Alongside the ammonia initiative, India is also working on cleaner fertilizer production technologies.

NETRA, the research arm of NTPC, is setting up a 150 tonnes per day (TPD) green urea plant at Pudimadaka in Andhra Pradesh. The project will use carbon capture technology along with water electrolysis to produce environmentally friendly green urea, supporting India's long-term sustainable agriculture and clean energy goals.

Why This Decision Matters for Farmers

The approval comes at an important time, as July is one of the busiest sowing months in India and fertilizer demand reaches its peak.

India imports nearly 10 million tonnes of urea every year to meet domestic demand. If direct use of anhydrous ammonia becomes commercially successful and the necessary infrastructure is developed, it could significantly reduce the country's dependence on imported urea while ensuring a more reliable nitrogen supply for farmers.

The initiative also has the potential to improve fertilizer efficiency, strengthen India's fertilizer security, and support long-term agricultural sustainability. However, its success will depend on safe handling practices, proper farmer training, standardized application methods, and the development of nationwide infrastructure for ammonia storage and soil injection.

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CMV360 Says

The government's approval for the direct use of anhydrous ammonia marks an important step toward improving fertilizer availability and reducing India's dependence on imported urea. With an 82% nitrogen content, ammonia offers a more concentrated nutrient source than conventional urea. Early ICAR trials have shown promising results, while parallel investments in green urea production highlight India's focus on sustainable agriculture. Although significant infrastructure and safety challenges remain, successful implementation could modernize fertilizer use, improve nutrient efficiency, and provide long-term benefits for Indian farmers and the agricultural sector.