Fertilizer Innovation Centre Proposed in Odisha, PPP platform to Drive Climate-Smart, Self-Reliant Fertilizer Sector

Odisha is set to emerge as a major hub for fertilizer innovation with the proposal to establish the Fertilizer Innovation Centre–India (FIC-India) under a Public–Private Partnership (PPP) model. The initiative has been jointly proposed by Paradeep Phosphate Ltd and four other fertilizer companies, the International Fertilizer Development Center (IFDC), and the Government of Odisha.

Anchored by IFDC as part of the Global Network of Fertilizer Innovation Centers (GN-FICs) spanning the USA, Brazil, Egypt, Morocco, Zimbabwe, and Malaysia, FIC-India will serve as the Asia and South Asia hub. It aims to accelerate a self-reliant fertilizer sector by translating research into market-ready, farmer-focused, and environmentally sustainable products, while reducing public subsidy burdens and improving soil and environmental health.

Addressing Structural Challenges in India’s Fertilizer Sector

Fertilizers have played a central role in India’s agricultural transformation since independence. Foodgrain production has increased more than six fold, while fertilizer use has expanded sharply, making India the world’s second-largest fertilizer consumer with over 16 percent of global consumption. However, nutrient use efficiency (NUE) remains below 30% (vs 50–70% in developed countries), imports dominate supply (25% N, 90% P, 100% K), and fertilizer subsidies exceeded USD 20 billion. Urea production alone emits ~119 Mt CO₂eq annually, while over-reliance on nitrogen (67% share) threatens long-term sustainability. Without reform, fertilizer demand is projected to double by 2050.

FIC-India’s mission is to double nutrient use efficiency by 2035, reduce the environmental footprint of fertilization, enhance farmer profitability, and position India as a global leader in climate-smart fertilizer innovation. 

Dr. Yashpal Singh Saharawat, Global Director, at International Fertilizer Development Center told Rural Voice, "India's fertilizer future is not a question of 'if' but 'how' country lead. Fertilizer Innovation Centre- India will transform this sector from subsidy-dependent to solution-driven. FIC-India- a public-private partnership blueprint: double nutrient use efficiency, strategically reduce the fiscal burden of subsidies, secure farmer prosperity, and establish India as the tall leader in climate-smart fertilizer innovation—especially for the Global South. The time for incremental change is over; the era of transformative leadership begins now."

Governance Under PPP Model

Under the proposed governance framework, public, private, and global research institutions will play defined roles. The public sector, including national ministries and the Odisha government, will provide policy support, regulatory facilitation, land and infrastructure, and farmer outreach.

The private sector, led by Paradeep Phosphate Ltd and allied companies, will contribute investment, industrial expertise, pilot facilities, and market linkages. IFDC and its global network will provide international technical expertise, policy guidance, and cross-country knowledge exchange.

The Ministry of Chemicals and Fertilizers role would include enabling research and development, supporting low-carbon ammonia and bio-based solutions, coordinating stakeholders, and positioning Odisha as a regional innovation hub.

Expected Impact

The proposed centre targets a range of economic, environmental, and social benefits. These include doubling nutrient use efficiency, cutting fertilizer-related greenhouse gas emissions by about 25 percent, increasing average farm incomes by 20–30 percent through efficiency gains and potential carbon credits, and catalyzing nearly USD 0.5 billion in private investment in advanced fertilizers and manufacturing.

For farmers, FIC-India promises access to high-efficiency fertilizers, lower input costs, improved yields, better soil fertility, and greater resilience to climate risks. For industry, it offers pathways to innovation leadership, improved efficiency, and global competitiveness. For government, the initiative could help contain subsidy costs, strengthen food security, and advance climate commitments.

If implemented, FIC-India could mark a significant shift in India’s fertilizer strategy, placing soil health, innovation, and sustainability at the center of agricultural growth while positioning the country as a global leader in climate-smart fertilizer solutions.