The manufacture, sale, and distribution of fertilizers in the country is regulated by the Ministry of Chemicals and Fertilizers, under the Essential Commodities Act, 1955.
There are three major types of nutrients used as fertilizers: Nitrogen (N), Phosphatic (P), and Potassic (K).
Of these, the pricing of urea (containing N fertilizer) is controlled by the government, while P and K fertilizers were decontrolled in 1992, on the recommendation of a Joint Parliamentary Committee.
It has been observed that urea is used more than other fertilizers. While the recommended ratio of use of the NPK fertilizers is 4:2:1, this ratio in India is currently at 6.7:2.4:1.
Overuse of urea is especially observed in the states of Punjab, Haryana and Uttar Pradesh.
An imbalanced use of urea may lead to a loss of fertility in the soil over a period of time, affecting productivity.
Urea (N) is the most produced (86%), consumed (74%) and imported (52%) fertilizer in the country.