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Context:

The parliamentary committee on fertilizers has urged the government to address under-funding of nutrient subsidy schemes to ensure that subsidy schemes for farmers remain unaffected.

Highlights of the Report

The parliamentary Standing Committee on Chemicals and Fertilizers has warned against under-funding of nutrient subsidy schemes, and stress that insufficient funding will negatively impact farmers who depend on these subsidies to access affordable fertilizers.

Additional funds

The Committee urges the Union Fertilizers Ministry to provide additional funds during the revised estimate stage because the Ministry of Finance reduced the Department of Fertilizers' projected budget by 7.38%. This cut affects both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.

Nano Fertilizers

The Committee recommended expanding the production capacity of nano urea and nano diammonium phosphate (DAP). They emphasise the need for timely establishment of production units and call for strategies to popularize these advanced fertilizers among farmers.

Nano fertilizers enhance crop growth by increasing yield. For example, combining nano urea with conventional urea boosts pea yields by 6.14% to 14.82%. Nano DAP reduces the need for conventional granular DAP through seed treatment and foliar application.

Fertilizer production

The Committee suggested securing mining lease agreements with resource-rich countries for raw material extraction, exploration, refining, and production.

It stresses the importance of government, public, and private investments to develop domestic fertilizer production capabilities.

About Nutrient-Based Subsidy (NBS) Scheme

The Ministry of Chemicals and Fertilizers launched the Nutrient-Based Subsidy (NBS) Scheme in 2010 to promote balanced fertilizer use by farmers, ensure soil health improvement and increased agricultural productivity.

It provides fixed subsidies on fertilizers based on their nutrient content, such as Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S).

Objectives of the NBS Scheme

• Encourages the use of fertilizers containing secondary and micronutrients like Sulphur, Zinc, and Boron.
• Ensures that fertilizer manufacturers produce a wider variety of fertilizers to meet diverse soil requirements.
• Stabilizes fertilizer prices for farmers while allowing companies to adjust their retail prices within limits.
• Promotes sustainable agricultural practices by reducing over-reliance on urea-based fertilizers.

How does the NBS Scheme differ from the earlier subsidy system?

Before the NBS Scheme, the government provided subsidies based on the cost of production of fertilizers, largely focusing on urea; this led to excessive urea usage, harming soil health.

The NBS Scheme shifts the focus to nutrient content. It fixes subsidies for each nutrient and allows market forces to determine retail prices, it encourages farmers to adopt balanced fertilization practices instead of depending solely on nitrogen-heavy fertilizers.

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Source: 

THEHINDU