India has launched field demonstrations to assess whether green ammonia can replace conventional urea fertiliser in selected agricultural applications. The programme targets 10,000 acres during the 2026 rabi season and is being implemented by the Indian Council of Agricultural Research (ICAR) under the National Green Hydrogen Mission. The government hopes the approach will improve nitrogen-use efficiency, reduce fertiliser costs and create a new domestic market for green ammonia.
The proposed method involves injecting liquid ammonia beneath the soil surface using specialised equipment, rather than applying urea in the conventional way. Ministry of New and Renewable Energy Secretary Santosh Sarangi told Moneycontrol that direct application could reduce costs to approximately one-third of current levels. However, the claim remains a potential outcome of the trials, not a verified nationwide saving. Researchers will need to compare crop yields, fertiliser requirements, operating costs and safety before determining whether the technique is commercially viable.
Key Takeaways
- Pilot programme: India is evaluating green ammonia across 10,000 acres of farmland during the 2026 rabi season.
- Potential cost reduction: The government estimates that direct soil injection could reduce fertiliser costs by about two-thirds if trials confirm the expected efficiencies.
- New application method: Specialised equipment places liquid ammonia approximately six inches below the soil surface.
- Crop testing: The demonstrations cover multiple crops, including mustard, with assessments of productivity, nitrogen-use efficiency and cultivation costs.
- Import dependence: India spent more than $14.5 billion on fertiliser imports in 2025–26, according to Moneycontrol.
- Not yet a nationwide replacement: The trials must establish the method’s safety, effectiveness and economics before wider adoption.
What Is Green Ammonia, and How Is It Different From Urea?
Green ammonia is ammonia produced using hydrogen generated through renewable-powered electrolysis, generally combined with nitrogen separated from the air. Conventional ammonia production typically relies on hydrogen derived from natural gas or other fossil fuels.
Urea is a widely used nitrogen fertiliser manufactured using ammonia and carbon dioxide. Farmers apply it to supply nitrogen, an essential nutrient that supports plant growth, leaf development and the production of proteins.
The proposed Indian pilot examines whether ammonia can be applied directly to soil, potentially avoiding the need to convert it into urea for the tested applications.
| Feature | Conventional urea | Green ammonia direct application |
|---|---|---|
| Product used | Solid urea granules | Liquid ammonia |
| Application method | Commonly spread on soil or applied according to farming practice | Injected beneath the soil using specialised equipment |
| Nitrogen content | Approximately 46% by weight | Approximately 82% by weight |
| Production emissions | Depend on the ammonia and energy used in manufacturing | Potentially lower when produced with renewable electricity |
| Key consideration | Familiar application methods and established supply chains | Equipment, safe handling, nitrogen retention and crop performance |
Green ammonia’s higher nitrogen concentration does not automatically mean that farmers can apply a fixed quantity and obtain better results. Application rates must be adjusted to crop requirements, soil conditions and agronomic recommendations.
How the Government’s 10,000-Acre Trial Will Work
ICAR launched the national demonstration initiative in Punjab on October 24, 2026. The programme aims to cover 10,000 acres across the country during the rabi season, when crops such as wheat and mustard are cultivated.
In Punjab, six Krishi Vigyan Kendras (KVKs)—in Bathinda, Jalandhar, Moga, Amritsar, Sangrur and Hoshiarpur—are scheduled to conduct 300 demonstrations each, totalling 1,800 demonstrations in the state.
ICAR has also been conducting demonstrations across approximately 300 acres of mustard fields in Mahendergarh, Haryana. On October 29, it announced another demonstration in Bulandshahr, Uttar Pradesh, as part of a wider programme covering seven districts in the state.
The trials will monitor several indicators:
- Crop growth and final yield.
- Nitrogen-use efficiency and nutrient losses.
- The quantity of fertiliser required.
- Cultivation and equipment costs.
- Economic returns compared with conventional urea-based practices.
These measurements are important because reducing the quantity of fertiliser used is not necessarily beneficial if crop productivity falls or the cost of specialised machinery outweighs the savings.
How Direct Injection Could Reduce Fertiliser Costs
When urea is applied to farmland, some nitrogen can be lost through processes such as ammonia volatilisation, leaching and other transformations in the soil. The amount lost depends on soil properties, weather, irrigation and how the fertiliser is applied.
Directly placing ammonia below the soil surface could help retain nitrogen in the crop’s root zone and reduce certain losses. If crops absorb a larger proportion of the applied nitrogen, farmers might need less fertiliser to achieve comparable yields.
The government has presented a potential cost reduction of around two-thirds, meaning that costs could fall to approximately one-third of current levels under the proposed method.
However, that outcome depends on several factors: the cost of green ammonia, the price and availability of conventional urea, the efficiency of application equipment, labour requirements and crop response. The full calculation must also account for transport, storage, training and safety systems.
The pilot’s economic results will determine whether the projected savings can be realised in practice. The headline estimate should not yet be interpreted as a guaranteed reduction in farmers’ fertiliser bills.
Why Fertiliser Costs Matter for India
India’s fertiliser sector has significant implications for government spending, agricultural productivity and national energy security.
According to Moneycontrol, India imported fertilisers worth more than $14.5 billion in 2025–26. The total import bill, including raw materials and inputs used in domestic production, exceeded $27.2 billion. The government spent approximately ₹1.93 lakh crore on fertiliser subsidies as of March 16, 2026, against a budget allocation of ₹2.02 lakh crore for the year.
These figures illustrate the financial scale of the challenge. India must maintain affordable fertiliser supplies for farmers while managing international price volatility and the cost of domestic production.
Urea is also a heavily subsidised product in India. Farmers pay a controlled retail price, while the government bears much of the difference between that price and the recognised cost of production and supply. A successful alternative could potentially reduce resource use and ease some pressure on the agricultural supply chain, although the effect on the subsidy bill would depend on the final cost structure and government policy.
Green Ammonia Could Support India’s Clean Energy Strategy
The agricultural trial is connected to India’s wider effort to develop green hydrogen and its derivatives.
Launched in January 2023 with an outlay of ₹19,744 crore, the National Green Hydrogen Mission aims to establish India as a major producer, user and exporter of green hydrogen. Green ammonia is one of the products being promoted because it can serve as a feedstock for fertilisers and other industrial applications.
In March 2026, the government announced green ammonia supply agreements involving 13 fertiliser units, with an allocated supply capacity of 724,000 tonnes per year and 10-year contracts. The reported prices ranged from ₹49.75 to ₹64.74 per kilogram.
Those agreements concern green ammonia supplies for fertiliser production, whereas the new agricultural pilot is testing direct application in soil. The two initiatives are related but serve different purposes: one seeks to integrate cleaner ammonia into industrial production, while the other evaluates whether ammonia can be used differently in the field.
If both approaches prove economically workable, they could help create demand for domestically produced green ammonia and reduce some dependence on fossil-fuel-based inputs.
Safety and Practical Challenges Remain
Liquid ammonia is not interchangeable with urea in terms of handling. It is hazardous, can cause severe chemical burns and requires specialised storage, equipment and operating procedures.
The direct-injection method therefore depends on trained operators, properly maintained applicators and controls that prevent leaks or accidental exposure. The approach also needs to be evaluated across different soils, crops, weather conditions and farm sizes.
Equipment costs may be particularly important for smaller farms. A technique that works on large demonstration plots may require shared machinery, service providers or other arrangements to become practical for farmers with limited acreage.
Researchers will also need to establish appropriate application rates and demonstrate that crop yields remain competitive. Until these questions are resolved, farmers should continue following established fertiliser recommendations rather than independently substituting liquid ammonia for urea.
The Bigger Picture
India’s green ammonia trial is an attempt to address two connected challenges: the cost of supplying nitrogen to agriculture and the emissions associated with producing fertiliser. Direct injection could improve nutrient-use efficiency, while renewable-powered production could reduce the fossil-fuel intensity of ammonia manufacturing.
The results will matter beyond the initial 10,000-acre programme. If the method proves safe, affordable and effective across different cropping systems, it could provide another option for improving nitrogen management. If equipment costs, safety requirements or crop performance limit adoption, the government may need to refine the technique or focus on other uses for green ammonia.
FAQs
1. What is green ammonia?
Green ammonia is ammonia produced using hydrogen made with renewable electricity, generally through electrolysis, and nitrogen from the air. It can potentially reduce emissions compared with conventional ammonia production based on fossil fuels.
2. Can green ammonia replace urea fertiliser in India?
India is testing direct soil injection as a potential alternative for selected agricultural applications. The technology has not yet been established as a nationwide replacement, and its suitability must be determined through field trials.
3. How much could fertiliser costs fall?
The government has indicated that direct injection could reduce costs to approximately one-third of current levels, equivalent to a potential reduction of around 67%. This is an estimate that needs to be validated through the demonstrations.
4. Which crops are being tested?
The programme includes demonstrations across multiple crops. Mustard fields in Mahendergarh, Haryana, are among the locations specifically identified by ICAR, while the wider national initiative covers farmland across multiple states.
5. Is liquid ammonia safe for farmers to apply?
Liquid ammonia requires specialised equipment, trained operators and strict safety precautions. Farmers should not handle or apply it without approved procedures and appropriate professional support.
Looking Ahead
The next stage will be to compare green ammonia applications with conventional urea-based fertilisation using measured data on crop yields, nutrient retention and total cultivation costs. Results from the 2026 rabi season should help researchers determine where the method is most effective and what equipment or operating standards are required.
For India, the wider opportunity is to connect agricultural efficiency with the development of cleaner industrial inputs. The government’s two-thirds cost-reduction estimate has attracted attention, but the decisive evidence will come from field performance, farmer economics and safe operation under real farming conditions.
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