BackECONOMY
India's food security is largely dependent on the Persian Gulf
A detailed analysis argues that India's food security hinges on synthetic fertilisers largely imported from Gulf states and Russia, linking farm costs and subsidies to geopolitics. It outlines historical context, current import shares, subsidy costs, and potential transition pathways toward more self-reliant farming and green ammonia.
Why It Matters
The dependency ties India's food system to energy markets and regional politics, with significant fiscal costs and environmental implications. Shifts in input sourcing or policy could affect farmer costs and national food security.
Timeline
12 Events
Publication of Gulf-dependence analysis
April 24, 2026
The article published on April 24, 2026 argues that India's food security rests on synthetic fertilisers produced from imported natural gas, phosphate, and potash, with Gulf States being the main suppliers of these inputs alongside oil. It notes that 2024 data show Saudi Arabia, Oman, and Qatar together supplied more than three-quarters of India's ammonia imports, and provides 2024–25 figures: Oman 26 lakh tonnes of urea, Saudi Arabia 19 lakh tonnes of DAP, and Russia 18 lakh tonnes of potash, while potash remains 100% imported.
Fertliser subsidy for 2024-25
April 2024
The fertiliser subsidy was budgeted at nearly $23 billion for 2024-25.
Russia potash imports in 2024-25
April 2024
Russia supplied 18 lakh tonnes of potash for India in 2024-25, with routes that pass through Gulf logistics corridors.
Saudi Arabia DAP imports in 2024-25
April 2024
Saudi Arabia supplied 19 lakh tonnes of di-ammonium phosphate (DAP) in 2024-25.
Oman urea imports in 2024-25
April 2024
Oman alone supplied 26 lakh metric tonnes of India’s urea imports in 2024-25.
India's 2023-24 foodgrain output
March 2024
Foodgrain production exceeded 330 million tonnes in 2023-24, marking a major post-Independence agricultural achievement.
2024 Gulf-anchored ammonia imports share
2024
In 2024, Saudi Arabia, Oman, and Qatar together supplied more than three-quarters of India’s ammonia imports.
Fertiliser-related import bill in 2021-22
March 2022
Including imported raw materials and intermediates alongside finished products, India’s fertiliser-related import bill in 2021-22 reached $24.3 billion.
Sri Lanka fertiliser ban in 2021
2021
Sri Lanka banned chemical fertilisers in 2021, causing rice yields to fall and food prices to rise; the ban was reversed within six months, illustrating transition risks.
Urea price fixed since March 2018
March 2018
Urea has been sold at ₹242 per 45-kg bag since March 2018, with the government covering the gap through subsidies.
Sikkim's full organic transition
2016
Sikkim went fully organic around 2016, with reported productivity gains of 12% over five years.
Near-famine context in the 1960s
1965
The article recalls that India was near famine in the mid-1960s before the expansion of agricultural output through the Green Revolution.