Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes (NBS) | Current Affairs | Vision IAS
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Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes (NBS)

Posted 24 Mar 2025

2 min read

The Committee observed that while Department of Fertilizers had projected an outlay of ~₹ 1.84 lakh crore for its various schemes in 2025-26, the Ministry of Finance had reduced this allocation by ~7%.

  • The reduction has been made in both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.

Other Key Observations of the Report

  • Strengthening Fertilizer Security: Geopolitical disruptions and price volatility have led to shortages of critical fertilizers. E.g., DAP.
  • Technological Advancements and Mining: Lack of initiatives to secure mining leases for essential raw materials like phosphates and potash.
  • Revision in Grades of NPKS (nitrogen-phosphorus-potassium-sulphur) Fertilizers: Soil-specific fertilizer grades are not always available, leading to additional costs for farmers.
  • Direct Benefit Transfer (DBT): DBT system lacks a mechanism to verify genuine beneficiaries, leading to misuse.
  • Nano Fertilizers: Nano Urea and Nano DAP show promise in improving crop yields but require further research.

Recommendations

  • Supply Compliance and Balanced Distribution: Enforce supply compliance with penalties, prioritize balanced fertilizer distribution based on soil requirements.
  • Fertilizer Crisis Early Warning System: Establish FCEWS to predict shortages and maintain strategic reserves.
  • Integrate Aadhaar authentication with the Farmer’s Registry for better targeting and dynamic purchase caps based on landholding size.
  • Promote Urea Gold to improve soil health, crop yield, and reduce reliance on conventional urea.

Nutrient-Based Subsidy (NBS) Policy

  • Subsidy Rates: Fixed per nutrient for Nitrogen (N), Phosphate (P), Potash (K), and Sulphur (S), reviewed annually or bi-annually.
  • Coverage: Includes 28 grades of P&K fertilizers such as Di-Ammonium Phosphate (DAP), Mono Ammonium Phosphate (MAP), and Muriate of Potash (MOP).
  • MRP Flexibility: Manufacturers set MRPs, checked by the government to ensure affordability.
  • Additional Subsidies: Separate subsidies for micronutrients like Boron and Zinc.

Urea Subsidy Scheme

  • Objective: Ensures affordable Urea for farmers, crucial for food security.
  • Production Focus: Aims for self-sufficiency in Urea production, with a focus on maximizing indigenous production.
  • Tags :
  • nutrient subsidy schemes
  • FCEWS
  • NPKS
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