Food & Agriculture
Problem Overview: 70% fertilizer runoff, leading to higher input while decreasing soil productivity
India is the 2nd largest consumer of synthetic fertilizers, of which 80% is domestically produced. Fertilizer use is heavily skewed towards Urea due to Government Subsidy, leading to excessive Nitrogen application compared to other required soil nutrients. Farmers are applying 3x more nitrogen than recommended, resulting in soil health degradation. Excess Nitrogen is not absorbed by crops, which then escapes into waterways or in the atmosphere as nitrous oxide - contributing ~100 Mn Mt CO2e emission annually. Over time, it increases soil acidity & reduced nutrient efficiency- weakening the soil’s ability to support crop growth. Farmers then apply more fertilizer just to maintain same yield, creating a vicious cycle of declining productivity but rising input use & higher emissions.
Core Bottlenecks: Farmers stuck in a vicious cycle
Solutions for biological nitrogen fixation, balanced fertilizer use & soil monitoring exist but the following challenges are still prevalent:
1. Subsidy-Trap
Heavy Urea subsidy suggests no rational reason for farmers to switch to alternative options, even if it means excessive use with lower output.
2. Fragmented Farmer Access & Distribution
Primary user of nitrogen fertilizers are small & marginal farmers. With low capital capacity & fragmented farmlands without a robust supply chain, access to farmers for alternative solutions is a challenge.
3. Knowledge Gap
Decline in yield, soil health & water contamination are slow onset, invisible threat to farmers livelihoods that they can’t tie back to excess urea use. Economic benefit of balanced fertilizer use and soil health monitoring has also not penetrated the large fragmented farmer populations.
Existing Approaches and Technology Readiness
Nitrification Inhibition & Controlled Release Nano-Fertilizer
Efficiency is limited across various soil types is needed
Rhizosphere Microbial Modulation - Metabolites or bio fertilizer
High mortality in varying Indian climates , short shelf life & inconsistent field efficacy
Genetic Nitrogen Use Efficiency
Early research, restricted deployment
Where is the white-space for innovation?
PM-Pranam creates the incentive needed against subsidized urea for states to adopt alternatives. This opens up opportunity for cost effective solutions & scaled adoption. Many agribusinesses are already investing in precision farming practices & leveraging carbon credits. There is a need for innovation on three fronts:
Science Breakthrough
Shelf-stable, hyperlocal soil/crop specific microbial study for enhanced Nitrogen fixing & slow release bio-fertilizers. India’s soil composition differs vastly across regions requiring local evaluation and innovation catering to those micro-climates.
Engineering Innovation
Precision agriculture needs scaling. From Monitoring, MRV, to targeted spraying & farm inputs, crop advisory - there is a need to develop cost effective, easy to use models for mass deployment
Financial Model
Outcome based contracting in order to proliferate to masses through trusted distribution channels. Product margin is difficult when end users are farmers, but a guaranteed yield output can earn performance margins.
How we identify climate innovation opportunities?
- Karan Kothadiya, Hemant Mallya & Deepak Yadav (2024,Sept). Economic Feasibility of Green Ammonia Use in India’s Fertiliser Sector, CEEW
- Reyes Tirado (2010,Aug). Greenhouse gas emissions & mitigation potential from fertilizer manufacture and application in India, ResearchGate
- Amrit Kaal: Empowering India’s Farmers Through Strategic Fertilizer Policy (2025,Aug). PIB.gov
- Assumptions for calculations, Carbon Credit Price Assumed at $10, Assuming 70% Nitrogen application is excess & can be avoided. Economic Potential Mentioned is SAM considering 25% market penetration only due to challenges with subsidies.
Last Updated On: June 5, 2026
Economic Potential
- India, 20255,000Mn USD[1]
- India, 20306,200Mn USD
Impact Potential
- India, 202556-70 Mn Mt CO2e[2]
- India, 203069-83 Mn Mt CO2e[3]
Water
Biodiversity
Air Pollution
p-ARL Score
6/12
Regulatory Outlook
Implemented
Implemented
Implemented
Spotlight for innovation in India
Research
Nano Biotechnology Research Center: World’s first liquid nano-fertilizer to product nano Urea
Indigenous microbial strains
High-throughput biological screening platform (SNIPR)
Soil Microbes encapsulation