Commission for Agricultural Costs & Prices (CACP) highlights imbalanced fertilizer subsidies undermining yields and soil health | Current Affairs | Vision IAS
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    Commission for Agricultural Costs & Prices (CACP) highlights imbalanced fertilizer subsidies undermining yields and soil health

    Posted 16 Oct 2025

    2 min read

    Article Summary

    Article Summary

    The CACP warns that imbalanced fertilizer subsidies reduce yields, harm soil health, and increase import dependency, recommending phased urea price hikes, integrated nutrient management, and soil testing upgrades.

    The CACP highlighted issues related with fertilizers in its recent report Price Policy for Rabi Crops, Marketing Season 2024-25.

    Key Issues Highlighted

    • Decreasing fertilizer response: Foodgrain production per kg of NPK fell from 12 kg (1960-69) to 3 kg in 2020.
    • Impact of Subsidy Structure: Overuse of urea due to subsidies has caused nutrient imbalances and lopsided soil fertility. 
    • Uneven Fertilizer Use: In some States and districts, per hectare use is higher than required quantity, while in others, the use is very low. 
      • E.g. Some districts of Andhra Pradesh and Tamil Nadu record > 500 KG per hectare use which is far above recommended levels.
    • Dependent on imports of both raw materials and finished fertilizers: About 30 % of demand is met through imports.

    Recommendations of CACP

    • Phased Urea Price Increase: Use subsidy savings to support P & K fertilizers. 
    • Promote Integrated Nutrient Management (INM): It integrates chemical fertilizers, organic manure, and bio-fertilizers.
    • Strengthening Soil Testing: Upgrade labs, install modern equipment, and train staff for real-time soil analysis and advisory services.

    Measures to address Fertilizers related Issues

    • Nutrient-Based Subsidy (NBS) Scheme
    • PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother-Earth (PM-PRANAM),
    • Other Soil Health Card, Neem-Coated Urea, promotion of nano fertilizers etc. 
    • Tags :
    • Fertilizer subsidy
    • CACP
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