Why in News?

The Parliamentary Standing Committee on Chemicals and Fertilizers has recommended that the Union Fertilizers Ministry seek additional funds to ensure the smooth implementation of fertilizer subsidy schemes for farmers.

What’s in Today’s Article?

• Key Recommendations of the Committee
• Government Initiatives in Fertilizer Subsidy and Soil Health Management
• Impact of Long-term Chemical Fertilizer Use and Recommendations
• Conclusion

Key Recommendations of the Committee:

• Need for additional budget allocation:
  • The Committee urged the Ministry to request additional funds at the revised estimate stage to prevent adverse impacts on farmers.
  • The projected outlay for the Department of Fertilizers in 2025-26 was ₹1,84,704.63 crore, but the Ministry of Finance reduced it by 7.38% to ₹1,71,082.44 crore.
  • The cut has affected both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.
• Expansion of nano fertilizer production:
  • The Committee recommended expanding the production capacity of Nano Urea and Nano DAP (Diammonium Phosphate).
  • Timely establishment of production units was emphasized to ensure availability.
  • Popularization of these nano fertilizers among farmers was suggested, citing their role in enhancing crop yield.
  • For example, field trials showed that Nano Urea led to a yield increase, with the highest impact on peas (6.14%–14.82%) and the lowest on sugarcane (1.65%–4%).
• Self-sufficiency in fertilizer supply:
  • While India has agreements for importing fertilizers and raw materials, the Committee noted a lack of efforts to secure mining leases for domestic exploration and production.
  • It urged the Centre to enter into mining lease agreements for better self-reliance.
  • Investment from Government, Public, and Private sectors is essential to achieving self-sufficiency.
• Addressing underutilisation of funds:
  • The Committee pointed out underutilisation of funds in 2024-25 across various categories:
    • 20% under indigenous Phosphorus & Potassium (PK) fertilizers.
    • 12% under imported PK fertilizers.
    • 14.76% under indigenous Urea.
    • 59.57% under Market Development Assistance (MDA).
  • It recommended full utilization of allocations for effective implementation of schemes.
• Continuation of the Urea Subsidy Scheme:
  • Given the critical role of urea in food grain production, the panel stressed the need to continue the Urea Subsidy Scheme.
  • It also highlighted that Nano DAP could reduce the dependence on conventional granular DAP through seed treatment and foliar application.

Government Initiatives in Fertilizer Subsidy and Soil Health Management:

• NBS Scheme:
  • Implemented on April 1, 2010, for Phosphatic & Potassic (P&K) fertilizers.
  • Under NBS, a fixed subsidy is provided based on nutrient content, including Di-Ammonium Phosphate (DAP).
  • P&K fertilizers are decontrolled, allowing companies to fix Market Retail Price (MRP) under government monitoring.
• Urea Subsidy Scheme:
  • Urea is provided at a statutorily notified MRP of ₹242 per 45 kg bag (excluding neem coating and taxes). MRP unchanged since March 1, 2018.
  • The difference between market price and cost is covered by the government as a subsidy.
• Special Package for DAP (2024-25):
  • Due to geopolitical factors affecting procurement, the Government approved a one-time special package for DAP.
  • Additional subsidy of ₹3,500 per MT was granted for April 1, 2024 – March 31, 2025, beyond NBS rates.
  • Ensures sustainable DAP availability at affordable prices.

Impact of Long-term Chemical Fertilizer Use and Recommendations:

• ICAR study:
  • No harmful effects on soil fertility if used judiciously and in balanced proportions.
  • Imbalanced use leads to:
    • Nutrient deficiencies and declining soil health.
    • Continuous nitrogenous fertilizer (urea) use causing crop yield decline.
    • NPK fertilization still results in secondary and micronutrient deficiencies over time.
  • Drip irrigation (fertigation) improves water and nutrient efficiency, reducing fertilizer usage.
• Soil health management recommendations (ICAR):
  • Soil test-based integrated nutrient management is advised.
  • Balanced use of:
    • Inorganic fertilizers (NPK).
    • Organic sources (manure, bio-fertilizers).
    • Training and awareness programs conducted for farmers.
• Promotion of organic fertilizers under GOBARdhan initiative:
  • Market Development Assistance (MDA) of ₹1,500/MT for organic fertilizers.
  • Covers manure production under GOBARdhan initiative, linked with:
    • SATAT scheme (MoPNG) for biogas.
    • Waste-to-Energy program (MNRE).
    • Swachh Bharat Mission (Rural).
    • ₹1,451.84 crore allocated (2023-26), including ₹360 crore for research.

Conclusion:

The Committee’s recommendations aim to ensure self-sufficiency, subsidy continuity, and better agricultural productivity through advanced fertilizers like Nano Urea and Nano DAP.

The Government's initiatives in fertilizer subsidy and soil health management aim to ensure affordable fertilizer availability, reduce dependency on imports, and promote sustainable agricultural practices.

Balanced fertilizer use, organic alternatives, and efficient irrigation methods are key to maintaining soil fertility and food security.