(General Studies III – Economy section – Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices; Public Distribution System – Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security; Technology Missions; Economics of Animal-Rearing.)
In the near future, the Indian government is expected to prioritize capping the consumption of urea and DAP to correct the worsening plant nutrient imbalance and promote balanced fertilization.
India’s fertilizer use –
- India is the world’s largest consumer of Urea, a nitrogenous fertilizer. This is due to heavy subsidies that keep its price artificially low compared to other essential fertilizers like DAP (Phosphatic) and MOP (Potassic).
Fertilizer used in India Urea contains 46% nitrogen (N) Di-ammonium Phosphate (DAP) contains 18% nitrogen (N) and 46% phosphorus (P). Muriate of Potash (MOP) contains 60% potassium (K). |
- Imbalanced NPK Ratio: The recommended ratio for NPK (Nitrogen: Phosphorus: Potassium) fertilizers is 4:2:1. However, due to subsidy structure, N consumption is much higher, leading to imbalanced soil health.
- Import Dependence: India relies heavily on imports for P and K fertilizers (around 90% and 100% respectively). This creates vulnerability to price fluctuations in the global market.
- Disparities in Consumption: Fertilizer use varies greatly across regions. Punjab uses much higher quantities compared to states like Rajasthan.
Consequences of excessive fertilizer use Soil Degradation: Excessive nitrogen use can degrade soil health, reducing long-term fertility. Water Pollution: Fertilizer runoff can pollute water bodies, impacting aquatic life and drinking water quality. Subsidy Burden: Heavy subsidies strain the government’s finances and distort market prices. Inefficiency: Imbalanced fertilizer use reduces agricultural productivity and profitability. |
Balanced Fertilization –
- Supply primary (N, P, K), secondary (S, calcium, magnesium), and micro (iron, zinc, copper, etc.) nutrients in the right proportion based on soil and crop requirements.
- India relies heavily on imported fertilizers and raw materials, impacting foreign exchange and subsidy burdens. Balanced fertilization helps overcome high import dependency.
- International prices of urea, DAP, and MOP have decreased, offering an opportunity for rationalizing MRPs and promoting balanced nutrition.
Nutrient-Based Subsidy (NBS) –
- Instituted in April 2010 to promote balanced fertilization by linking subsidies to nutrient content.
- Initially successful, but excluded urea, leading to increased urea consumption due to controlled prices.
- Presently, non-urea fertilizers under price control, causing imbalances. DAP has become the “new urea” with high consumption, while MOP is less used.
Government Initiatives to tackle challenges of excessive fertilizer use Nutrient-Based Subsidy (NBS) System: Introduced in 2010 to promote balanced fertilization. Neem-Coated Urea: Introduced in 2015 to reduce illegal diversion and improve nitrogen use efficiency. PM PRANAM Scheme: Launched in 2021 to promotes organic and bio-fertilizers to reduce chemical fertilizer. One Nation One Fertilizer: Launched in 2022, it aims to provide a uniform grade of fortified fertilizers with balanced NPK content under the name ‘Bharat’. Nano Urea: Launched by IFFCO in 2021, Nano Urea is a liquid fertilizer with potentially higher efficiency and reduced application rates. Nano Urea Plus also launched recently. Sulphur coated Urea (SCU): Also called as Urea Gold, it is a non-organic slow-release fertilizer. Improves nitrogen use efficiency and contains S-17% and N-37%. |
Implementation Challenges –
- Proper Implementation: Ensuring proper price hierarchy and promoting balanced fertilization are crucial.
- Nutrient Imbalances: Addressing imbalances caused by current pricing and consumption patterns is a priority.
Policy Recommendations –
- Price Hierarchy: Proper pricing of non-urea fertilizers with DAP the highest, MOP the lowest, and complexes in between.
- SSP (Single Super Phosphate) Promotion: Address low acceptability by marketing in granular form to prevent adulteration and ensure slow release.
- Urea Under NBS: Consider bringing urea under NBS and increasing subsidies on other nutrients to promote balanced nutrition.
- Sulphur-Coated Urea: Recently introduced, with a 12.5% price hike, as part of balanced fertilization initiatives.
Fertilizer use is critical for enhancing agricultural productivity in India, a country with a significant agrarian economy where implementation of various policies to ensure the availability and affordability of balanced fertilization for farmers becomes important.