This article provides a comprehensive picture of the Indian fertilizer industry and the various problems and challenges it is likely to face in the years ahead.

The Indian economy is basically an agriculture- driven economy with 70% of its population involved in agriculture and allied fields and contributing 25% of the country's GDP. The stress on self-sufficiency and self-reliance in foodgrain production in successive five-year plans followed by the concerted implementation of this policy resulted in a substantial increase in agricultural output and productivity. From a modest level of 52 million tons in 1951-52, foodgrain production rose to more than 206 million tons in 1999-2000. This success story of the Green Revolution and self-reliance in food production would not have been possible but for the stellar role played by the Indian chemical fertilizer industry.

This growth in foodgrain production in the country has come in the backdrop of significant increase fertilizer consumption. Policies were framed by the government to ensure easy availability of fertilizers and its consumption at affordable prices. Subsidies were provided by the government to that fertilizers reached the farmers and also to provide a reasonable return to the manufacturers who contributed immensely to the growth of this industry for four decades. However, with the onset of liberalization and measures to bring in fiscal reforms, grant of direct subsidy to the fertilizer industries came under flak and was withdrawn. Thus for the last 5-8 years, many of the units are struggling to stay afloat.

Portfolio Organizer Magazine, Indian Chemical Fertilizer Industry, Indian Economy, Gross Domestic Products, GDP, Globalization, Domestic Industry, Farm Management, Management Systems, Rural Economy, Department of Agriculture and Cooperation, Expenditure Reforms Commission, Fertilizer Control Order, Essential Commodities Act, Supply-Chain Management.