Nithin Kamath is worried about Indian farmers; Zerodha CEO explains how Strait of Hormuz closure could seriously hurt everyone

Zerodha CEO Nithin Kamath has raised concerns over India’s heavy dependence on imported fertilisers and raw materials used in fertiliser production, calling it a serious vulnerability for the country’s agriculture sector.

In a detailed post on X, Kamath said India spends more than $20 billion on imported fertilisers and fertiliser-related raw materials every year.

According to him, the ongoing energy crisis and disruption caused by the closure of the Strait of Hormuz have exposed just how fragile these supply chains can be.

Nithin Kamath Says Fertiliser Dependency Is Similar to Oil Imports

Highlighting the scale of the issue, Kamath wrote: “India spends $20+ billion on imported fertiliser and raw materials for fertiliser production.”


He compared the country’s fertiliser dependency to its reliance on imported oil, pointing out that agriculture remains central to the Indian economy.

Kamath added: “Just like oil, this is another critical import dependency, especially given agriculture's centrality to the Indian economy.”

Strait of Hormuz Crisis and Rising Urea Prices Raise Concerns

The Zerodha founder noted that geopolitical disruptions are already affecting the fertiliser ecosystem.

According to Kamath: “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.”

He warned that the impact would eventually be felt by Indian farmers, many of whom are already under financial pressure.

Kamath also pointed to the possibility of a weak monsoon adding further stress to the agriculture sector.

“To make things worse, there’s a reasonable probability of a weak monsoon.”

Nithin Kamath Asks Whether India Can Reduce Fertiliser Dependence

In his post, Kamath raised several questions around how India can reduce its reliance on imported fertilisers while maintaining agricultural productivity.

He asked: “Can we scale sustainable farming practices?”

“Can we reduce excessive fertiliser use without hurting yields?”

“Can we help farmers use more organic manure generated on their own farms?”

He also questioned whether India could build alternative systems around cleaner and decentralised technologies.

“Can we build alternatives around bio-inputs, green hydrogen, ammonia, biogas, and other decentralised systems?”

Zerodha Founder Highlights Sustainable Farming Startups

Kamath clarified that he is not an expert in the sector but said his growing interest in climate-related issues and the global energy crisis had pushed him to think more deeply about the topic.

“I’m not an expert, but I’ve been wondering about these things as I've been reading more about El Niño and the worsening energy crisis.”

He also highlighted the work being done by some companies in Zerodha’s portfolio.

Organic Manure and Biogas Systems

Speaking about Akshayakalpa, Kamath said the company has been educating farmers on sustainable agricultural practices, including the use of organic manure produced directly on farms.

He added that many farms connected to the company already use biogas systems.

According to Kamath: “Many of their farms also use biogas systems, which become even more relevant during times like this, when gas prices rise, and natural gas supply chains become fragile.”

Ossus and Marin Elixir Working on Alternative Solutions

Kamath also mentioned Ossus, which is working on green hydrogen technology that could potentially reduce emissions linked to ammonia production.

He described ammonia production as: “One of the most carbon-intensive parts of the fertiliser value chain.”

Another company, Marin Elixir, is focused on organic and sustainable seaweed extracts and biostimulants.

“Self-Sufficiency Is Not Optional Here”

Ending his post, Kamath said India needs more founders, innovation and long-term investment in the fertiliser sector.

He wrote: “Fertiliser is one of those boring but critical areas where India needs more founders, more experiments, and more patient capital.”

Kamath concluded with a strong message on the need for long-term resilience in agriculture: “Self-sufficiency is not optional here.”