India's $20 billion weak spot: Zerodha's Nithin Kamath flags crisis in THIS critical sector

As the West Asia crisis disrupts energy markets and global supply chains, Zerodha founder and CEO Nithin Kamath has raised concerns over India’s heavy dependence on imported fertilisers and raw materials, warning that the pressure could eventually hit Indian farmers.

“India spends $20+ billion on imported fertiliser and raw materials for fertiliser production,” Kamath wrote on Thursday, calling fertiliser another major strategic vulnerability for India after oil imports.

“The closure of the Strait of Hormuz has brutally exposed this vulnerability. Energy prices have risen, fertiliser supply routes have been disrupted, and urea prices have shot up. The pain will eventually reach already beleaguered Indian farmers,” he said.

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Kamath also flagged concerns over a potentially weak monsoon, saying the situation could worsen pressure on the agriculture sector. “To make things worse, there’s a reasonable probability of a weak monsoon,” he said.

The Zerodha founder questioned whether India could reduce its dependence on imported fertilisers by scaling sustainable farming practices and encouraging alternatives such as bio-inputs, green hydrogen, ammonia, and biogas systems.

“So the question I have is: what can we do to reduce this dependency? Can we scale sustainable farming practices? Can we reduce excessive fertiliser use without hurting yields?” he asked.

Kamath said several startups were already experimenting in the space. He cited Akshayakalpa’s work on sustainable farming and biogas systems, Ossus’s efforts in green hydrogen, and Marin Elixir’s work on seaweed extracts and biostimulants.

“Fertiliser is one of those boring but critical areas where India needs more founders, more experiments, and more patient capital. Self-sufficiency is not optional here,” he wrote.

Kamath added that India needed more entrepreneurs working on fertiliser alternatives, soil health, and decentralised energy systems, saying such areas deserved long-term investment and innovation.