Introduction India’s farmlands are paying the price of a fertilizer imbalance. For years, cheap, heavily subsidized bulk NPK fertilizers (nitrogen, phosphorus, and potassium mixed together), including urea and di-ammonium phosphate (DAP), have been the go-to input for smallholder farmers. But what once seemed like a quick fix has come at a high cost: soils stripped of their natural fertility, stagnant and declining yields, and rising pollution in rivers and air. As climate change brings more erratic rains, droughts, and floods, farmers find themselves struggling to adapt with soils that can no longer keep up. A smarter path is emerging. Enhanced-efficiency specialty fertilizers (EESFs) promise to nourish crops more comprehensively and precisely, reduce waste, and rebuild soil nutrition—helping farmers boost productivity while strengthening resilience to climate shocks. EESFs are advanced fertilizers designed to release nutrients gradually in a more targeted manner, so that they are present in root zones at the time and in the amount that crops require to support plant health and efficient production. Unlike traditional fertilizers like urea, which provides only nitrogen, or bulk compound NPK fertilizers, EESFs are engineered with coatings, inhibitors, or solubility controls. Instead of flooding the soil with nutrients all at once, EESFs release just small amounts at the right time, thereby reducing waste, preventing pollution, and boosting crop health. Addressing Soil Nutrition Imbalance For decades, India’s fertilizer market has been shaped by subsidies that made urea and DAP cheaper than other fertilizers that contain secondary and tertiary nutrients essential to optimal plant growth and productivity. Although crops require a balanced diet of nitrogen, phosphorus, and potassium for healthy growth, and secondary and tertiary for nutrients for optimal production, the low price of urea and DAP encouraged farmers to rely on primary nutrients, while ignoring the rest of the nutritional pyramid. For instance, farmers’ heavy reliance on urea has thrown India’s soil nutrition off balance. It has led to an oversupply of nitrogen in soils, while failing to replenish other critical nutrients that crops also need. Such imbalance leads to weakened soils, declining yields, and widespread environmental problems, from polluted waterways to air emissions. To address the nutrient imbalance, bulk compound NPK fertilizers were introduced. These combine nitrogen, phosphorus, and potassium in a fixed ratio, helping preserve soil balance better than urea alone. However, NPK blends are not tailored to specific soils or crops, and therefore are less efficient in nutrient delivery. Enhanced-efficiency specialty fertilizers (EESFs) represent a smarter, more precise alternative to bulk fertilizer use. EESFs are formulated to deliver not only the primary NPK nutrient efficiently, but also to intentionally include secondary (e.g., magnesium and sulfur) and tertiary nutrients (e.g., zinc and boron) in balanced, plant-available forms, ensuring more complete and sustained crop nutrition. Further, these are not “one-size-fits-all” as their nutrient ratios and release characteristics are selected based on soil nutrition, crop type, and growth stage. Soil testing identifies which nutrients are insufficient to support plant growth and production, while crop nutrient requirements determine the optimal NPK balance and the need for secondary or tertiary nutrients. By releasing nutrients slowly or in controlled amounts that match crop uptake patterns, EESFs ensure crops receive the right nutrients at the right time. This precision reduces losses from leaching, runoff, and volatilization—pathways through which fertilizers are otherwise washed into rivers or released into the air. Studies suggest that EESFs can reduce nutrient runoff by up to 60%, improving water quality and reducing environmental damage. Improving Climate Resilience Long-term overuse of bulk fertilizers that deliver only primary nutrients weakens soil health, impacting plant health, and increasing plant vulnerability to climate change and impacts. Degraded soils store less water, leach nutrients more easily, become compacted and limit root penetration and growth. These impacts make yields more vulnerable to droughts, heat stress, erratic rainfall, as well as to pest pressures which may grow alongside climate change. The adverse effects of bulk NPK fertilizers highlights the need for efficient and more climate-resilient farming methods that combine water and soil management with improvements, including balanced and efficient fertilizer use, crop rotation and diversification, and climate stress-tolerant crop varieties. EESFs support these practices. By improving soil fertility, reducing nutrient runoff, and enhancing nutrient use efficiency, EESFs help farmers withstand droughts, precipitation variations, and other climate shocks while maintaining productivity. Scaling the Use of EESFs Although EESFs outperform bulk NPK fertilizers in long-term soil and yield benefits, their higher cost—attributed to added technology (coatings, inhibitors, solubility controls) and the lack of government subsidy—hinders wide use. In South Asia (including India), estimates from market research suggest conventional urea is typically much cheaper per unit than slow-release versions. While urea can cost around ₹3,000 ($36) per 45-kg bag globally (about $0.80 per kg), it is provided to Indian farmers at a statutorily notified Maximum Retail Price (MRP) of just ₹242 ($2.66) per 45 kg bag—or approximately $0.06 per kg—a price that has remained unchanged since March 2018 despite rising global costs. Recognizing the value of EESFs, the Asian Development Bank (ADB) partnered with Smartchem Technologies Limited (now Mahadhan Agritech Limited)—India’s leading specialty fertilizer producer—through a $30 million loan signed in 2022. The Smartchem Climate-Smart High-Efficiency Crop Nutrition Project aims to expand production and adoption of EESFs; finance research and development, training, and capital expenditure in energy efficiency and safety; support farmers in Maharashtra, India in adopting smarter, more sustainable soil and crop management practices and beyond, with 300 agronomists offering personalized guidance, mobile support, and hands-on demonstrations; improve food security, farmer incomes, and climate resilience while reducing environmental impacts; and ensure gender inclusion in training and adoption programs. Conclusion The path to sustainable agriculture in India will not be forged by fertilizers alone; it begins with understanding farmers’ daily realities and designing solutions that actually work for them. This farmer-first approach is what makes EESFs vital. They are not just about boosting yields; they are part of a possible shift toward climate-smart, resource-efficient farming in India. By improving soil fertility and reducing fertilizer-related air and water pollution, EESFs offer a pathway for Indian agriculture to move beyond the “cheap now, costly later” trap of bulk NPK fertilizer dependence. Scaling the production and adoption of EESFs requires overcoming the cost barrier through private sector research and investments, strategic partnerships, and supportive policies. Private companies can help reduce unit costs through economies of scale, continuing research and product innovation, and providing technical training and advisory services to customer farmers. At the same time, development banks and governments can support adoption by providing capacity-building initiatives, raising awareness, offering transitional support, and fostering a conducive policy environment. With ADB’s backing and STL’s innovation, India’s farmers are being given the tools to farm smarter, adapt better, and sustain their land for generations. Resources Asian Development Bank. 2022. ADB Supports Food Security in India Through Investments in Soil Nutrition And Climate-Resilient Farming. News Release. 4 October. Government of India, Press Information Bureau. 2025. Prime Minister’s address from the ramparts of the Red Fort on the occasion of the 78th Independence Day. Press Release. 18 March. Narendra Modi. 2023. Subsidy of Rs.10 Lakh Crore for Providing Cheaper Urea to Farmers: PM Modi. 15 August. R. H. Wanjari et al. 2022. Balanced Use of Fertilizers: A Key for Sustaining Crop Productivity and Soil Quality. Indian Farming. 72 (4). pp. 34–37. September. ICAR-Indian Institute of Soil Science. R. K. Tewatia. n.d. Potassium Nutrition for Balanced Fertilisation in India: Need of Appropriate Policy Intervention. Fertiliser Association of India. URL: https://www.ipipotash.org/udocs/264-Part-3.pdf (accessed 4 November 2025) Ask the Experts Manfred Kiefer Principal Economist, Private Sector Operations Department, Asian Development Bank Manfred Kiefer is primarily involved in assessing development results of ADB’s investments. Prior to this role, he worked as energy economist and development results specialist at different international financial institutions. He holds an MSc in Economics from Freie Universität Berlin. Follow Manfred Kiefer on Brett Sutton Senior Agribusiness Climate-Smart Agriculture Advisor, Private Sector Operations Department, Asian Development Bank Brett Sutton has 19 years of professional experience, including over 10 years of impact-oriented agronomy and agribusiness work in Asia. He joined ADB as a consultant in 2020 and has led more than 20 technical assistance programs improving the climate resilience of over 80,000 farmers across Asia. Brett also conducts climate risk assessments for ADB’s agribusiness investments and supports these private sector clients in their efforts to improve the climate resilience of smallholder farmers. Follow Brett Sutton on Christian Abeleda Associate Economics Officer, Private Sector Operations Department, Asian Development Bank Christian Abeleda supports private sector projects, particularly in the agribusiness sector, by preparing economic evaluations and enhancing development impacts perspectives. His research focus is on monitoring and evaluation of impacts of agricultural development projects. He holds an agribusiness management degree from the University of the Philippines Los Baños. Follow Christian Abeleda on Arvin Yana Consultant, Private Sector Operations Department, Asian Development Bank Arvin Yana is a communications specialist with over 2 decades of experience in strategic communication and knowledge management promoting various development programs across different themes, including private sector development, environmental sustainability, and inclusive growth. He holds a degree in communications and public relations from the University of Newcastle, Australia. Follow Arvin Yana on Leave your question or comment in the section below: View the discussion thread.