Kwame Zaire joins us today to discuss the strategic imperative of fertilizer security and the future of industrial chemicals. As a veteran in manufacturing policy and production management, Zaire provides a unique lens on the Ministry of Chemicals and Fertilizers’ current crossroads regarding domestic self-sufficiency. Our conversation centers on the potential revival of dormant urea plants in West Bengal and Chhattisgarh, the technological shifts required for modernizing legacy infrastructure, and the delicate balancing act between expanding domestic capacity and managing a rising demand curve that shows no signs of slowing down.
How do you interpret the current scale of India’s reliance on urea imports, and what does the data suggest about the urgency of domestic expansion?
The current disparity between production and consumption is a clear signal that the industrial strategy must evolve quickly to prevent a widening supply gap. During the 2024-25 period, domestic urea production stood at 307 lakh tonnes, which sounds substantial until you realize that consumption reached 388 lakh tonnes, leaving a significant void. This shortfall forced the country to import more than 100 lakh tonnes of urea during the 2025-26 fiscal year to ensure agricultural stability. Relying so heavily on international markets exposes the supply chain to price volatility and logistical disruptions that can be avoided with local output. Addressing this 81 lakh tonne deficit is not just an industrial goal but a necessity for national food security and economic resilience.
The parliamentary panel highlighted the Korba unit in Chhattisgarh as a missed opportunity; what makes this specific site such a strategic priority for revival?
The Korba unit of the Fertilizer Corporation of India possesses a distinct locational advantage in Chhattisgarh that has yet to be fully leveraged by the current administration. The standing committee has rightly pointed out that the government’s initial replies failed to specifically address the potential of this site, despite its proximity to essential raw materials. One of the most exciting prospects for Korba is the recommendation to explore coal gasification as a technological foundation for its revival. Implementing such advanced technological options would not only bring an idle facility back to life but would also align with modern industrial standards for efficiency. We need to see a time-bound commitment to techno-economic feasibility studies to ensure this locational asset does not continue to sit underutilized.
With several plants already in the process of revival across various states, how significant is the additional 63.5 lakh tonnes of capacity to the national supply chain?
The government’s strategy to revive units in Ramagundam, Gorakhpur, Sindri, Talcher, and Barauni is a massive undertaking that adds a combined 63.5 lakh tonnes per annum to our domestic capacity. Each of these five units is designed to contribute 12.7 lakh tonnes per annum through joint ventures involving nominated public sector undertakings. When you add the newly approved plant at Namrup in Assam, which also brings 12.7 lakh tonnes to the table, the cumulative impact on the domestic market is profound. This massive influx of production will significantly narrow the gap, yet the committee remains cautious, suggesting that even this boost might not be enough to satisfy long-term requirements. It is a race against time to get the Talcher unit, which is currently in the execution stage, fully operationalized so we can realize these gains.
What are the primary technical and administrative hurdles that are currently delaying the revival of the Durgapur and Haldia units?
The delay in reviving the Durgapur and Haldia units under the Hindustan Fertilizer Corporation Ltd stems from both administrative red tape and a “wait-and-see” approach from the Department of Fertilizers. Specifically, there is a pressing need to finalize the Durgapur lease deed with the West Bengal government, a procedural step that has become a bottleneck for further progress. The government’s current stance is to defer a final decision on these units until they can assess the demand-supply gap after the other major plants, like the one in Namrup, become operational. This conservative approach risks leaving valuable infrastructure idle for years while demand continues to climb. The parliamentary panel is pushing for a more proactive stance, urging the department to apprise them of progress on lease agreements and feasibility studies rather than simply waiting for future market data.
What is your forecast for India’s journey toward fertilizer self-sufficiency by 2035?
The path toward self-sufficiency is a steep climb, especially given that urea demand is projected to rise to a staggering 444 lakh tonnes by the 2035-36 period. While the addition of over 76 lakh tonnes from current revival projects—including the 12.7 lakh tonnes from Namrup—is a vital first step, it only solves the problems of today, not the projected needs of the next decade. I forecast that the government will eventually be forced to move forward with the Durgapur, Haldia, and Korba units because the projected demand growth will likely outpace the current expansion projects. To achieve true independence from imports, the industrial policy must transition from a reactive model to a forward-looking strategy that integrates coal gasification and other high-tech solutions. If we do not begin the techno-economic studies for these idle units now, we will find ourselves facing another massive import bill ten years down the line when consumption hits that 444 lakh tonne mark.
