Explained: Seasonal urea shortages in Telangana, AP point to subsidy-driven overuse, import dependence

Explained: Seasonal urea shortages in Telangana, AP point to subsidy-driven overuse, import dependence
Published on
3 min read

Hyderabad: Rabi season advances across Telangana and Andhra Pradesh. Farmers are once again lining up outside fertiliser depots, staging protests and complaining of inadequate urea supplies at a critical stage of crop growth. 

The scene has become a familiar one, repeating almost every Kharif and Rabi season, pointing to deeper structural issues in fertiliser planning and distribution.

Common problem for Telugu states 

Urea, a nitrogen-based fertiliser vital for crops such as paddy, maize and chillies, witnesses a sharp spike in demand during sowing and early growth phases. 

Andhra Pradesh has seen partial relief in recent weeks following increased Central allocations and subsidy-linked releases. However, Telangana continues to face acute shortages, with farmers in several districts reporting long queues and limited availability even in December.

What explains this recurring crisis?

1. Demand rises faster than supply

One of the primary reasons for urea shortages in both states is the steady expansion of cultivated area, particularly under paddy. 

In Telangana, record acreage during Kharif 2025 significantly pushed up fertiliser demand beyond projections. Agriculture department estimates indicate that the state faced a shortfall of around 2.24 lakh tonnes by July, after Central allocations fell short of assessed requirements.

A similar situation unfolded in Andhra Pradesh during the same season, where farmers reported a nearly 40 per cent deficit in urea availability at peak demand, affecting crop productivity and increasing distress.

While fertiliser demand in Telangana typically peaks during Kharif (June–September) and Rabi (October–March), annual consumption now stands at around 10–12 lakh tonnes. Officials admit that allocation formulas have not kept pace with changing cropping patterns and expanded sown areas.

2. Import dependence and global disruptions

India imports close to 30 per cent of its urea requirement, making domestic availability vulnerable to international developments. Geopolitical tensions, including the Russia-Ukraine conflict and export restrictions by major suppliers such as China, have disrupted global supply chains and driven up prices.

Agriculture Minister Tummala Nageswara Rao has repeatedly stated that the Centre’s control over fertiliser production and imports limits the state’s ability to respond quickly. Delays in shipments and reduced availability at the national level, he has said, inevitably translate into shortages on the ground.

Excessive and often imbalanced use of urea – encouraged by heavy subsidies – has further strained supplies, with experts warning that fertiliser consumption patterns remain skewed despite years of advisories.

3. Domestic production bottlenecks

Shortfalls are compounded by disruptions at domestic fertiliser plants. 

Repeated machinery failures and shutdowns at facilities such as the Ramagundam Fertiliser and Chemicals Limited (RFCL) unit in Telangana have affected output, narrowing the gap between production and demand even further during peak seasons.

Officials concede that while India has expanded urea manufacturing capacity in recent years, plant-level disruptions continue to have an impact on states with high consumption.

4. Distribution gaps and black marketing

Even where stocks are officially available, distribution inefficiencies worsen the crisis. 

Weak monitoring at Primary Agricultural Cooperative Society (PACS) centres has allowed hoarding and diversion, forcing farmers to buy urea at inflated prices in the open market, often paying Rs 350 per bag against the official price of Rs 276.

Long queues, rationing and district-wise disparities in availability have become indicators of shortage, with farmers in districts such as Warangal and Khammam reporting repeated delays in access during crucial crop stages.

5. Centre-State coordination issues

The annual urea crisis is also shaped by political and administrative friction between States and the Union government. 

Telangana has consistently blamed inadequate Central allocations, while the Centre has pointed to alleged overuse and poor distribution. Andhra Pradesh, too, has seen similar blame games during previous shortages, with the issue resurfacing regularly since at least 2022.

Farmer groups argue that without coordinated planning and transparent allocation mechanisms, the cycle is unlikely to break.

“These shortages are not accidental,” said Rythu Swarajya Vedika leader Vissa Kiran Kumar. “Rising consumption, dependence on imports and weak oversight together create conditions for an annual crisis, even as India speaks of self-sufficiency.”

Govt action on shortages so far

Shortages are typically acknowledged when multiple indicators converge: a visible demand-supply gap in official data, prolonged queues and price escalation at retail points, and early signs of crop stress or yield loss. 

In Telangana, protests intensified through December, even as officials claimed that some districts had adequate stocks.

As of December 30, the State government has introduced measures such as digital booking systems and rationing, limiting paddy farmers to two bags per acre, to manage supplies. Farmers, however, argue that such caps fail to account for weather-related losses, such as fertiliser being washed away by untimely rains.

Unless deeper issues – from cropping patterns and subsidy-linked overuse to production reliability and Centre-State coordination – are addressed, experts warn that urea shortages will continue to return every season, leaving farmers trapped in a predictable and preventable crisis.

Related Stories

No stories found.
logo
South Check
southcheck.in