Approach:

Introduction: Briefly mention the NBS policy and its goal.

Body: Write about the positive and negative impacts of the policy. Give some measures to improve NBS.

Conclusion: Give a forward-looking holistic conclusion to optimize fertilizer usage.

Answer:

The Nutrient Based Subsidy (NBS) policy in India was introduced to promote the balanced use of NPK fertilizers in the optimal ratio of 4:2:1 (the current NPK ratio of fertilizer usage is approximately 6.7:2.4:1) and encourage farmers to use the right type and quantity of nutrient-based fertilizers for specific crops and soil types.

The goal of the policy is to promote sustainable agriculture, enhance crop yields, and increase the efficiency of fertilizer use while reducing the fiscal burden of fertilizer subsidies.

Positive impacts of NBS:

1. Encourages balanced fertilizer use: The NBS policy incentivizes the production and use of fertilizers that contain a balanced mix of nutrients, which can help promote soil health and increase crop yields. It encourages the use of phosphatic and potassic fertilizers by providing subsidies to manufacturers based on nutrient content. Since its implementation, the production of phosphatic and potassic fertilizers has increased significantly.
2. Reduces overuse of fertilizers: The subsidy is provided based on the nutrient content rather than the quantity of fertilizer produced. This can lead to a reduction in fertilizer use which can minimize the negative environmental impact of excess fertilization. Thus it has improved soil health too.
3. Promotes the use of eco-friendly fertilizers: These fertilizers are less polluting and can lead to a reduction in greenhouse gas emissions.
4. Increases affordability of fertilizers: The NBS policy helps reduce the cost of fertilizers for farmers, which means that they can purchase fertilizers at more affordable prices. The subsidies allocated for urea-based fertilizers have also been reduced.

Criticisms of NBS:

1. Inadequate subsidies for certain nutrients: A study by the Indian Council for Research on International Economic Relations found that the actual subsidy received by farmers was much lower than the officially announced subsidy rates, due to high market prices of fertilizers.
2. Poor implementation: Some critics argue that the implementation of the policy has been poor, leading to disparities in subsidy distribution and inadequate monitoring and evaluation of the impact of the policy.
3. Crowding out of private sector investment: The government subsidy may discourage private companies from investing in the sector.
4. Impact on small farmers: The policy may have a disproportionate impact on small and marginal farmers who may not have access to sufficient credit to purchase fertilizers, even with subsidies.
5. Interference with market dynamics: The policy may interfere with market dynamics, leading to distortions in the pricing of fertilizers and affecting the competitiveness in the fertilizer sector.

Suggestions to improve the Nutrient Based Subsidy (NBS) policy:

1. Increase subsidies for certain nutrients that are currently under-represented in the NBS policy to encourage their usage.
2. Improve implementation by ensuring equitable distribution of subsidies, better monitoring and evaluation, and more transparency in the subsidy process.
3. Facilitate access to credit and farming inputs such as seeds, fertilizer, and machinery for small and marginal farmers, who may not have the resources to purchase fertilizers even with subsidies.
4. Promote research, development and innovation in the fertilizer industry to create new, more effective fertilizers that are eco-friendly, cost-efficient, and tailored to the specific needs of Indian soil and crops.
5. Promoting soil testing to determine the nutrient content of their soil and identify the specific types of fertilizers needed for optimal crop growth. Government and private institutions can promote the use of soil testing and provide guidance to farmers on how to use the results effectively.
6. Encouraging the use of organic fertilizers: Compost, natural manure etc. to reduce the reliance on chemical fertilizers and improve soil health.
7. Strengthening extension services: Provide farmers with information on good agricultural practices and the efficient use of fertilizers.
8. Leveraging technology: Mobile apps, Remote sensing, to improve fertilizer distribution and monitor its usage.

Improving nitrogen use efficiency can be achieved by implementing several strategies, including:

1. Soil Testing and Monitoring: Soil testing can help determine the nutrient status of the soil and determine any nutrient deficiencies. Soil health monitoring can help determine the effectiveness of the fertilization program and identify opportunities for improvement.
2. Use of Slow-Release Fertilizers: A slow-release fertilizer can gradually release nutrients over an extended period, helping reduce nutrient leaching and enhancing nutrient uptake by plants.
3. Crop Rotation and Cover Crops: Crop rotation involves growing different crops in a sequence, which can help improve soil health, reduce nutrient leaching, and enhance nitrogen fixation by certain plants. Cover crops can also help reduce erosion, maintain soil health, and provide a source of nitrogen for the subsequent crop.
4. Integrated Pest Management: It involves using a combination of techniques to manage pests, diseases, and weeds. Implementing IPM practices can reduce the use of synthetic fertilizers and enhance nitrogen fixation by certain plants.
5. Precision Agriculture: Using modern technologies such as GPS, remote sensing, and data analytics can optimize the use of fertilizers and other inputs. Implementing precision agriculture practices can help enhance nutrient use efficiency and reduce the negative environmental impact of fertilizers.

Overall, these suggestions can help improve the NBS policy's effectiveness in promoting the balanced use of fertilizers, reducing the negative environmental impact of fertilizers, and improving agricultural productivity while also minimizing costs for small farmers.