Learn from Sri Lanka’s experience on impact of fertilizer supply chains: experts

At a panel discussion on the "Impact of West Asia Crisis on Economic Disruptions and Sustainability: Implications for India," experts urged India to draw les...

What Happened

At a panel discussion on the "Impact of West Asia Crisis on Economic Disruptions and Sustainability: Implications for India," experts urged India to draw lessons from Sri Lanka's 2021 fertiliser ban, which led to catastrophic crop failures and contributed to the island nation's broader economic collapse.
Experts noted that while a transition to sustainable agriculture practices is desirable in the long term, abrupt shifts away from chemical fertilisers without adequate preparation — as Sri Lanka attempted — can devastate food production; India should continue its current balanced approach while gradually scaling up agroecological alternatives.
The discussion highlighted how the West Asia crisis has exposed the fragility of global fertiliser supply chains, with the Strait of Hormuz closure disrupting LNG supply (the primary feedstock for urea synthesis), DAP from West Asian and North African producers, and potash transit routes.
Experts recommended focusing on domestic fertiliser production capacity, accelerating PM-PRANAM (Pradhan Mantri Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) and Zero Budget Natural Farming initiatives, and building strategic buffer stocks of fertilisers — parallel to the discussion of strategic petroleum reserves.

Static Topic Bridges

Sri Lanka's Fertiliser Ban (2021) and Agricultural Crisis

In April 2021, Sri Lanka announced a complete ban on the import and use of synthetic fertilisers and agrochemicals, aiming to become the world's first fully organic farming nation and to conserve scarce foreign exchange reserves (estimated savings: up to $400 million annually). The policy was reversed only six months later in November 2021, but the damage to agricultural production was irreversible for that crop year.

Rice output fell by approximately 40% within a single growing season; Sri Lanka was forced to import rice for the first time in decades.
Tea yields in 2022 (the first full post-ban year) were 26.8% below baseline — a severe blow to Sri Lanka's largest export earner.
Total food production declined by 40–50% within months, triggering food price inflation, shortages, and social unrest.
The fertiliser ban was one of several contributing factors to Sri Lanka's 2022 economic crisis (foreign exchange default, fuel shortages, political upheaval), though debt unsustainability and the COVID-19 collapse of tourism revenues were also central causes.
The ban was lifted by November 2021 for key crops; chemical fertilisers were gradually reintroduced for rice and plantation crops.

Connection to this news: The Sri Lanka experience is a cautionary example of the severe consequences of abrupt fertiliser supply disruptions — whether self-imposed (as in Sri Lanka) or externally driven (as the West Asia crisis is now doing to India). Experts used it to argue against any rapid transition away from chemical inputs without robust alternatives in place.

India's Sustainable Agriculture Transition Initiatives

India has been pursuing a gradual transition toward sustainable farming through several complementary programmes, designed to reduce chemical input dependence without the supply shock risks seen in Sri Lanka.

Zero Budget Natural Farming (ZBNF): Promoted primarily in Andhra Pradesh and by the central government; relies on cow-dung-based inputs (bijamrit, jivamrit), mulching, and intercropping to eliminate external input costs. The National Mission on Natural Farming (NMNF) was launched in 2023 to scale ZBNF nationally.
PM-PRANAM (Pradhan Mantri Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth): Launched in 2023 to incentivise states to reduce chemical fertiliser use; states that reduce consumption below their baseline receive 50% of the subsidy savings as a grant for alternative fertiliser promotion and soil health restoration.
Soil Health Card Scheme: Launched in 2015, provides farmers with soil nutrient maps enabling precision application of fertilisers, thereby reducing over-application and improving efficiency.
Paramparagat Krishi Vikas Yojana (PKVY): Promotes cluster-based organic farming with financial assistance and market linkage.

Connection to this news: These initiatives represent the balanced approach experts advocate: gradually reducing chemical dependency through incentives and capacity-building, rather than the abrupt supply-side shock of Sri Lanka's ban.

Global Fertiliser Supply Chains and India's Vulnerabilities

Global fertiliser supply chains are highly concentrated among a small number of exporters, making importing nations like India structurally vulnerable to geopolitical shocks. The Russia-Ukraine war (2022) was the first major demonstration of this vulnerability in recent memory; the West Asia crisis of 2026 represents the second major shock in four years.

Russia is the world's largest exporter of nitrogen fertilisers (ammonium nitrate, urea) and a major potash exporter; Russia and Belarus together account for ~40% of global potash exports and ~23% of ammonia exports.
China's export restrictions on urea and phosphates (imposed in 2021 and periodically since) have had outsized price effects given China's ~30% share of global phosphate supply.
Morocco's OCP Group is the world's largest phosphate rock exporter; Jordan is a secondary phosphate supplier; both supply significant volumes of DAP to India.
Iran's role in ammonia and LNG supply, and the Strait of Hormuz's centrality to West Asian LNG/petroleum trade, have made the current conflict particularly damaging.
India has been diversifying sourcing toward Russia (fertilisers and LNG), Canada and Israel (potash), and Australian and African suppliers (phosphates) as long-term supply chain resilience measures.

Connection to this news: The expert recommendation to "learn from Sri Lanka" is not just about organic farming transition — it is also a warning against excessive import dependency for essential agricultural inputs, arguing for building domestic capacity and strategic buffer stocks.

Key Facts & Data

Sri Lanka fertiliser ban announced: April 2021; reversed: November 2021.
Sri Lanka rice output fall within one growing season post-ban: ~40%.
Sri Lanka tea yield fall in 2022: ~26.8% below baseline.
Sri Lanka food production decline: 40–50% within months of the ban.
Russia + Belarus: ~40% of global potash exports; ~23% of ammonia exports.
China: ~30% of global phosphate supply.
India urea imports: ~8–9 MMT annually (world's largest urea importer).
PM-PRANAM scheme (2023): states receive 50% of subsidy savings as grant for reducing chemical fertiliser use below baseline.
National Mission on Natural Farming (NMNF) launched: 2023, for scaling Zero Budget Natural Farming.
Soil Health Card Scheme launched: 2015.
India's alternative fertiliser sourcing (2026): Russia, Morocco, Belarus active as suppliers amid West Asian disruption.