How IFFCO Became a Leading Cooperative in Fertilizer Production

In the 1960s, Indian agriculture was caught in a bind: the cooperative sector distributed about 70 percent of the country’s fertilizers but had no production capacity of its own, leaving farmers entirely dependent on public and private suppliers. The demand-supply gap was widening, and the Green Revolution demanded reliable, affordable fertilizer at scale. The response to this challenge was the birth of IFFCO – a cooperative built not by corporations, but by farmers themselves – and over the next five decades it would grow into one of the most remarkable agricultural institutions in the world.

The founding of IFFCO: A cooperative born out of necessity 🔗

Indian Farmers Fertiliser Cooperative Limited (IFFCO) was formally registered on 3 November 1967 as a multi-unit cooperative society, headquartered in New Delhi. The idea had gained momentum in 1964 when the Cooperative League of the USA proposed a collaboration with Indian cooperatives to set up domestic fertilizer production. American cooperatives, through Cooperative Fertilizer International (CFI), provided both financial support and technical expertise to get the venture off the ground.

What made the founding vision distinctive was its ownership model. Farmers, through their own cooperative societies, created this institution specifically to safeguard their interests. Rather than being passive consumers of fertilizers made by private corporations, IFFCO made farmers stakeholders in the entire value chain – from production to distribution. Profits would flow back into the farming community, not to external shareholders.

IFFCO launched with just 57 member cooperatives. The first two plants – an ammonia-urea complex at Kalol and an NPK/DAP plant at Kandla, both in Gujarat – were commissioned in 1975. The Kalol plant was inaugurated by Prime Minister Indira Gandhi in 1974, marking a significant step toward domestic fertilizer self-sufficiency. Membership expanded rapidly through the late 1970s as more agricultural societies joined, drawn by the cooperative’s focus on equitable distribution and farmer empowerment.

Expanding production capacity across India 🔗

The success of the Kalol and Kandla plants gave IFFCO the confidence to scale up. A second ammonia-urea complex was commissioned at Phulpur, Uttar Pradesh in 1981, followed by the Aonla plant in 1988, also in Uttar Pradesh. These four facilities – Kalol, Kandla, Phulpur, and Aonla – were later expanded in the 1990s as part of IFFCO’s Vision 2000 programme, all completed without cost or time overruns. In 2005, IFFCO further strengthened its production base by acquiring a phosphoric acid and NPK/DAP plant at Paradeep in Odisha.

Today, IFFCO holds around 19% market share in urea and approximately 31% market share in complex fertilizers, making it India’s largest fertilizer manufacturer. With a net worth of $2.6 billion as of March 2021 and a ranking of 66th on the Fortune India 500 list, IFFCO’s industrial scale is undeniable – yet it remains wholly owned by cooperatives.

From 57 to 35,000: The growth of the cooperative network 🔗

IFFCO’s reach today is staggering. Starting with 57 cooperatives in 1967, IFFCO now encompasses over 36,000 member cooperative societies, serving more than 55 million farmers across India. The Marketing Division coordinates distribution through this vast network, reaching farmers in some of the most remote and difficult terrains in the country.

Sales and promotion activities are managed through the Marketing Central Office (MKCO) in New Delhi, supported by field marketing offices spread across states. Beyond cooperative channels, essential agri-inputs are also made available through a chain of 158 Farmers Service Centres (FSCs), which function as one-stop shops for seeds, crop protection products, and agronomic advice. The cooperative’s products are marketed across 28 states and union territories, and it has consistently recorded capacity utilization above 100 percent for nitrogenous fertilizers.

Going global: International joint ventures and supply chain resilience 🔗

IFFCO’s strategy has never been confined to India’s borders. Recognizing the need to secure raw material supplies for its domestic plants, it established a series of international joint ventures. The Oman India Fertiliser Company (OMIFCO), set up in 2000 in Salalah, Oman, is a key venture where IFFCO holds a 25% stake, securing phosphoric acid and ammonia supplies. The Jordan India Fertilizer Company (JIFCO) was set up in partnership with Jordan Phosphate Mines Company, and the Kisan International Trading FZE (KIT) in Dubai handles imports, exports, and logistics. IFFCO is also present in Senegal through Industries Chimiques du Senegal (ICS).

These global operations provide IFFCO with supply chain resilience, reducing dependence on spot-market imports and insulating Indian farmers from price volatility in global fertilizer markets. In FY 2023-24 alone, KIT facilitated raw material imports worth ₹9,461 crore, underlining the scale of IFFCO’s international logistics operations.

Innovation in agri-marketing and technology adoption 🔗

IFFCO has consistently positioned itself at the intersection of agriculture and technology. One of its most celebrated recent innovations is Nano Urea – a nanotechnology-based liquid fertilizer developed and patented entirely in-house. Nano Urea particles measure 20-50 nanometres in size, giving them a far greater surface area than conventional urea granules and improving nutrient availability to plants by more than 80%. It reduces nitrogen losses from leaching and gaseous emissions, directly cutting the environmental footprint of fertilizer use.

IFFCO Nano Urea is the only nano fertilizer approved by the Government of India and included in the Fertilizer Control Order (FCO). A single 500 ml bottle can potentially replace up to 50% of a conventional urea bag applied as top dressing, making it easier and cheaper for farmers to transport and use. From August 2021 to June 2024, over 7.55 crore Nano Urea and 0.69 crore Nano DAP bottles were used by farmers across India.

DRONAI: Integrating drones, AI, and nano fertilizers 🔗

Taking technology deployment a step further, IFFCO launched the DRONAI programme – an integrated initiative that combines drone technology, nano fertilizers, artificial intelligence, and mobile platforms for precision foliar application of agricultural inputs. The AI-based software embedded in the system can detect crop growth and health in real time, guiding farmers toward smarter farming decisions. DRONAI is projected to cut farmer spraying costs by 50% while eliminating the drudgery and health hazards of manual chemical application. The programme is being rolled out in technical collaboration with agricultural universities across India and is designed specifically to build rural entrepreneurship through drone operator training.

Mixed reality for farmer education 🔗

IFFCO has also embraced immersive technology for farmer outreach. In 2025, IFFCO partnered with AI startup Flam to launch a mixed reality campaign across 90 rural stores in Punjab and Haryana, educating farmers about Nano Urea through interactive virtual demonstrations – accessible with just a QR code scan, requiring no app download. This approach reflects IFFCO’s broader commitment to making agricultural knowledge accessible to even the most remote farming communities.

Rural development: Beyond fertilizers 🔗

IFFCO’s mandate has always extended well beyond fertilizer production. Recognizing that farmer prosperity cannot be separated from broader rural development, the cooperative has built an ecosystem of not-for-profit institutions to address gaps that commercial operations cannot fill.

Key welfare institutions 🔗

The Cooperative Rural Development Trust (CORDET) provides training and education to farmers near IFFCO’s five manufacturing plant locations. CORDET’s Integrated Rural Development Programme (IRDP) has been implemented in 14 villages, covering community centre construction, drinking water facilities, tree plantation, soil testing campaigns, and vermicompost promotion. The IFFCO Kisan Sewa Trust (IKST) is a charitable trust funded jointly by IFFCO and its employees to provide financial assistance to farmers affected by natural calamities and those living below the poverty line. The Indian Farm Forestry Development Cooperative (IFFDC), established in 1993, focuses on developing wasteland into plantable farmland and improving the socio-economic status of tribal and rural communities through sustainable natural resource management.

Farmer extension and education programmes 🔗

IFFCO has been running structured farmer extension activities for decades. What began as a two-plot demonstration to educate local farmers on balanced fertilizer use has expanded into a programme covering over 2,300 villages, focusing on soil health, the importance of micronutrients, water conservation, and sustainable agriculture practices. Soil testing campaigns, field demonstrations, and training workshops run continuously through IFFCO’s field teams, helping farmers make data-driven decisions about fertilizer application rather than relying on guesswork.

Diversification: Insurance, telecom, and rural e-commerce 🔗

IFFCO’s diversification strategy shows how a cooperative can evolve into a comprehensive rural services platform. IFFCO-Tokio General Insurance Ltd (ITGI) offers rural-centric insurance products, including the ‘Sankat Haran Bima Yojana’ which provides free insurance cover to farmers with every bag of IFFCO fertilizer purchased. IFFCO Kisan Sanchar Ltd brought rural telephony to farmers in association with Bharti Airtel, accumulating over 2 million subscribers in rural India. The IFFCO eBazar platform was launched to bring modern retail and e-commerce to agricultural inputs, while the IFFCO BAZAR concept aimed to combine technology with rural retail experiences. In a joint venture with Mitsubishi Corporation, IFFCO-MC Crop Science Private Limited was incorporated to supply quality agrochemicals to Indian farmers.

IFFCO has invested in and introduced pathbreaking agrotechnology including IoT-based farm monitoring, rural e-commerce, and digital enablement of farmers and farms – what it describes internally as its Agriculture 2.0 vision. Equity stakes in the National Commodity and Derivative Exchange (NCDEX) and National Collateral Management Services Limited (NCMSL) further embed IFFCO in the infrastructure of Indian agricultural markets.

Global standing and continued relevance 🔗

The scale of IFFCO’s achievement is recognized globally. According to the 2023 edition of the World Cooperative Monitor published by the International Cooperative Alliance, IFFCO was ranked the number one cooperative in the world based on the ratio of turnover to GDP per capita, reflecting its extraordinary contribution to India’s economic output. It has also risen to 72nd position in the overall turnover ranking.

What makes this standing significant is that IFFCO achieved it while remaining democratically governed and farmer-owned. It has never lost sight of its founding mandate: to make Indian farmers economically stronger through access to quality inputs, fair pricing, and holistic community support. As it expands its nano fertilizer network, deploys agricultural drones, and builds rural digital infrastructure, IFFCO continues to demonstrate that the cooperative model – built on collective ownership and shared benefit – is not just viable but highly competitive in modern agriculture.

What do you think? India’s cooperative model gave farmers ownership of their supply chain – but with private agri-tech companies now entering rural markets with similar digital tools and products, how should cooperatives like IFFCO differentiate and sustain farmer loyalty? And as nano fertilizers promise to reduce chemical input use significantly, what role should farmer education play in ensuring this technology reaches small and marginal farmers who may be the last to adopt it?

References

1. https://www.indiancooperative.com/iffco/iffco%E2%80%94a-success-story/
2. https://en.wikipedia.org/wiki/Indian_Farmers_Fertiliser_Cooperative
3. https://grokipedia.com/page/Indian_Farmers_Fertiliser_Cooperative
4. https://in.linkedin.com/company/indian-farmers-fertiliser-coop-ltd
5. http://www.sankalpindia.net/iffco-empowering-farmers
6. https://www.iffco.in/en/nano-urea-liquid-fertilizer
7. https://nanourea.in/
8. https://eng.ruralvoice.in/cooperatives/iffco-integrating-drone-nano-dap-and-urea-ai-for-smart-farming.html
9. https://thecsruniverse.com/articles/flam-and-iffco-launch-mixed-reality-campaign-to-educate-farmers-on-nano-urea-in-punjab-and-haryana
10. https://www.iffco.in/en/not-for-profit-initiatives
11. https://www.iffco.in/en/farmer-development-programmes
12. https://www.iffco.in/en/IFFCO-is-number-1-cooperative-in-the-World