Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes

  • March 23, 2025
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes

Sub :Schemes

Sec :Agri

Introduction

  • The Parliamentary Standing Committee on Chemicals and Fertilizers, chaired by Kirti Azad, has raised concerns over the under-funding of nutrient subsidy schemes.
  • The committee has urged the Union Fertilizers Ministry to seek additional funds to prevent a negative impact on farmers.

Budget Allocation and Reduction in Funds

  • The Department of Fertilizers had projected an outlay of ₹1,84,704.63 crore for 2025-26.
  • However, the Ministry of Finance reduced this allocation by 7.38% to ₹1,71,082.44 crore.
  • This reduction has affected both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme, impacting the smooth implementation of these programs.

Call for Expanding Nano Fertilizers Production

  • The committee recommended expanding the production capacity of Nano Urea and Nano Diammonium Phosphate (Nano DAP).
  • It urged the government to ensure the timely establishment of production units.
  • Additionally, a strategy to popularise nano fertilizers among farmers was suggested.

Need for Securing Raw Material Supply

  • While agreements between Indian fertilizer companies and resource-rich countries exist, there are no efforts to secure mining lease agreements for:
    • Extraction
    • Exploration
    • Refining
    • Production
  • The committee emphasized that without physical measures and public-private investments, achieving self-sufficiency in fertilizers would be difficult.

Underutilisation of Funds in 2024-25

  • The committee pointed out underutilisation of funds in various categories:
    • 20% under indigenous phosphorus and potassium (PK) fertilizers.
    • 12% under imported PK fertilizers.
    • 14.76% under indigenous urea.
    • 59.57% under Market Development Assistance (MDA).
  • It recommended ensuring full utilisation of allocations in a planned manner.

Impact of Nano Fertilizers on Crop Yield

  • The combination of Nano Urea with conventional Urea resulted in an increase in crop yield.
  • Highest yield improvement observed:
    • Peas: 6.14% to 14.82%
    • Sugarcane: 1.65% to 4%
  • Field trials of Nano DAP indicated that its use for seed treatment and foliar application could reduce the requirement for conventional granular DAP.
  • The committee recommended expanding Nano Urea and Nano DAP production capacities in a timely manner.

Conclusion

  • The committee has urged the government to prioritise fertilizer subsidy schemes, secure raw materials, and expand nano fertilizer production to ensure self-sufficiency and better agricultural productivity.
Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes Schemes