India has signed agreements with green ammonia producers and fertilizer consumers for the world's largest tender at the most affordable rates.
This development comes eight months after the auction of prices and no formal signing of the agreements, an issue that was highlighted by The New Indian Express two weeks ago.
The event was attended by key figures, including Union Minister of New and Renewable Energy (MNRE) Prahlad Joshi, Union Minister of Fertilizers (MoF) and Health J P Nadda, and Union Minister of State for Power and MNRE Y S Naik. Santosh Sarangi, Secretary of MNRE, and Rajat Mishra, Secretary of MoF, were also present.
Ministers described the occasion as a "game changer and a significant event for Atmanirbhar Bharat." Green ammonia is essential for producing agricultural fertilizers especially Di Ammonium Phosphate (DAP), which are crucial for maintaining food security, especially in a volatile world. Green ammonia is produced using green hydrogen derived from water, which reacts with nitrogen from the atmosphere.
The ongoing war between the US-Israel, and Iran is threatening the supply of conventional (grey) ammonia, posing a risk to India's food production. India imports over 70% of its more than 30 million mt of grey ammonia, primarily sourced from fossil fuels in countries like Oman, Saudi Arabia, Qatar, and Bahrain.
India has been facing supply challenges as the crucial sea route Strait of Hormuz closed down.
Currently, the international price of grey ammonia ranges from approximately USD 800 to 900 per metric ton, while the domestic manufacturing cost of green ammonia is around USD 567 per metric ton.
Senior officials at the event emphasized that the time has come to raise the target for the nation to achieve self-reliance.
The New Indian Express reported on 16 March 2026 about the policy paralysis surrounding Green Ammonia amidst an energy crisis and an increasingly import-dependent economy.
So far, India has permitted the manufacturing of 7.24 million metric tons of green ammonia. India plans to use its own domestic electrolysis technology to produce green ammonia, which would reduce vulnerability to global market fluctuations. Furthermore, this allows for the potential export of green ammonia to developed countries like Germany, where prices are considerably higher.