Agriculture accounts for nearly 1/4th of India's GDP and more importantly, about 2/3rd of the country's population is dependent on agriculture and allied activities for their livelihood. Successive Five Year plans have stressed on self-sufficiency and self-reliance in food grains production and concerted efforts in this direction have resulted in substantial increase in agriculture production and productivity. This is clear from the fact that from a very modest level of 52 million tonnes in 1951-52, food grain production rose to above 206 million tonnes in 1999-2000. Behind India's success story of not only meeting total requirement of foodgrains but also having their exportable surplus, the significant role played by chemical fertilizers is well recognized and established beyond any doubt.

Chemical fertilizers have played a vital role in the success of India's green revolution and consequent self-reliance in food-grain production. The increase in fertilizer consumption has contributed significantly to sustainable production of food grains in the country. The Government of India has been consistently pursuing policies conductive to increased availability and consumption of fertilizers in the country. The production of nitrogen (N) and phosphorus (P) fertilizer together has increased from mere 0.3 lakh MT in 1950-51 to about 147 lakh MT in nutrients terms in 2001-02 . since there are no commercially viable sources of potash (K) in the country, its entire requirement is met through imports. The overall consumption of fertilizers in nutrient terms (N, P & K) currently is about 175 lakh MT per annum.

As of now, the country has achieved near self-sufficiency in production capacity of urea and DAP, with the result that India could manage its requirement of these fertilizers from indigenous industry and imports of all fertilizers except MOP have presently been nominal.

Over the last five decades, the production of nitrogenous (N) and phosphatic (P) fertilizers taken together has increased from a mere 0.3 lakh MT in 1950-51 to 146.28 lakh MT in nutrients terms in 2001-02. Since there are no commercially known sources of potash (K) in the country, its entire requirement is met through import. The overall consumption of fertilizers in nutrients terms (N P and K) has increased from 0.7 lakh MT to about 173.6 lakh MT during the same period. Accordingly, per hectare consumption of fertilizers less than 1 Kg in 1951-52 has gone up to the level of 90.1 Kg. in 2001-02.

With this level of production capacity, the country has achieved near self sufficiency in urea and DAP whereas not long back, India imported 38.2 lakh MT of urea and DAP both in 1999-2000 to meet their indigenous demand.