The two-day SAPLING (South Asian Policy Leadership for Improved Nutrition and Growth) Dialogue 2026 concluded on 10 June 2026 in Ahmedabad, Gujarat, with a call for a concrete action plan for the holistic development of the food processing sector in South Asia.
About SAPLING Dialogue 2026
Jointly organised by: Ministry of Food Processing Industries (MoFPI), Government of India and World Bank Group
Venue: Ahmedabad, Gujarat
Duration: 9-10 June 2026
Participants: Around 200 delegates.
Participants Included
Policymakers, Industry leaders, International organisations, Development partners, Researchers, Startups, Financial institutions, and Representatives from South Asian countries
Theme
“Unlocking Value: Advancing Food Processing for Employment Generation and Sustainable Growth in South Asia”
Key Objectives
Strengthen resilient, inclusive and sustainable food systems in South Asia.
Promote regional cooperation in food processing.
Encourage value addition in agriculture.
Facilitate technology adoption in the sector.
Generate employment opportunities.
Enhance farmer incomes and rural development.
Support MSMEs and women entrepreneurs.
[2023] Consider the following statements with reference to India: 1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with and machinery between is crore and 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?
Ahead of the 2026 FIFA World Cup, the axolotl has emerged as Mexico City’s unofficial mascot. However, conservationists have raised concerns that the popularity of the critically endangered amphibian has not translated into meaningful efforts to protect its rapidly disappearing habitat.
About Axolotl
Common name: Axolotl
Scientific name: Ambystoma mexicanum
Group: Amphibian (salamander).
Endemic to: Mexico, particularly the canals of Xochimilco in Mexico City.
Name derived from: The Nahuatl word meaning “water monster”.
Unique Features
Exhibits neoteny, retaining larval characteristics throughout its life.
Remains aquatic throughout its life cycle.
Breathes through External gills and oxygen absorption through its skin.
Extraordinary regenerative ability can regrow limbs, Parts of the spinal cord, Heart tissue, and Portions of the brain.
Conservation Status
IUCN Red List: Critically Endangered.
Wild populations have witnessed a drastic decline.
[2019] Consider the following statements: 1. Asiatic lion is naturally found in India only. 2. Double-humped camel is naturally found in India only. 3. One-horned rhinoceros is naturally found in India only. Which of the statements given above is/are correct?
The RBI has allowed banks to raise fresh 3-5 year Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits from NRIs and deposit the money with the RBI under a special scheme until September 2026. The RBI will bear the cost of protecting banks from exchange rate fluctuations (hedging cost), making it cheaper and more profitable for banks to attract foreign currency deposits. The objective is to encourage more NRI dollars to flow into India and strengthen foreign exchange inflows.
What are FCNR(B) deposits?
They are fixed-term foreign currency deposits offered by Indian banks to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).
They allow depositors to maintain savings in designated foreign currencies without converting funds into Indian rupees.
The RBI’s latest swap facility seeks to strengthen the attractiveness of these deposits and support India’s external financing requirements.
What is the US Dollar-Rupee Forex Swap Facility for FCNR(B) Deposits?
The Reserve Bank of India (RBI) introduced a special US Dollar-Rupee Forex Swap Facility to help banks mobilize fresh Foreign Currency Non-Resident, or FCNR(B) deposits. By bearing the hedging costs, the RBI enables banks to offer higher interest rates to NRIs without the currency risk.
Key details of the scheme include:
Eligible Depositors: Available to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).
Deposit Tenure: 3 to 5 years.
Deposit Currency: Mobilized in any freely convertible currency, but the swap must be done in US Dollars.
Foreign Currency Denomination: Maintains deposits in: US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Australian Dollar (AUD), and Canadian Dollar (CAD)
Swap Rate: Undertaken “at par” (the RBI will buy USD at the FBIL Reference Rate and later sell it back at the same rate).
Timeline: Valid for deposits mobilized between June 8, 2026, and September 30, 2026. The swap window remains open to banks until October 16, 2026.
Lock-in Period: Underlying deposits are subject to a 1-year lock-in period; however, the swaps undertaken with the RBI cannot be canceled.
Availability: Authorised Dealer Category-I banks can avail of this facility once a week.
External Vulnerability Reduction: Reduces dependence on volatile portfolio flows.
Conclusion
The RBI’s decision to revive the FCNR(B) swap window reflects its proactive approach to strengthening India’s external sector amid a challenging global interest rate environment. While the facility reduces costs for banks and can potentially attract additional foreign currency inflows, its success will ultimately depend on whether banks offer sufficiently competitive returns to NRIs. Sustained mobilisation of FCNR(B) deposits can enhance foreign exchange reserves, support balance of payments stability, and reduce vulnerability to volatile capital flows, thereby reinforcing India’s macroeconomic resilience.
Value Addition
FCNR(B) Deposits vs NRE Deposits vs NRO Deposits
Feature
FCNR(B)
NRE
NRO
Full Form
Foreign Currency Non-Resident (Bank) Account
Non-Resident External Account
Non-Resident Ordinary Account
Currency
Foreign Currency
Indian Rupee
Indian Rupee
Exchange Rate Risk
No
Yes
Yes
Repatriability
Fully Repatriable
Fully Repatriable
Limited Repatriability
Tax on Interest
Tax Exempt
Tax Exempt
Taxable
Depositor Eligibility
NRI/OCI
NRI
NRI
Importance of NRI Deposits for India
Stable Capital Source: Less volatile than Foreign Portfolio Investment (FPI) and other short-term capital flows.
Foreign Exchange Augmentation: Supports accumulation of Foreign Exchange (Forex) Reserves.
Banking Sector Funding: Provides long-term foreign currency liabilities to banks.
External Financing: Supports financing of the Current Account Deficit (CAD) and other external sector requirements.
Crisis Buffer: Acts as a source of foreign capital during periods of external stress and global financial uncertainty.
RBI Instruments for Managing External Sector Stability
FCNR(B) Swap Window: Mobilises foreign currency deposits from NRIs while reducing hedging costs for banks.
Foreign Exchange (Forex) Market Intervention: Stabilises excessive exchange rate volatility in the rupee.
Foreign Exchange Reserves: Provides a buffer against external shocks and capital outflows.
Monetary Policy Operations: Influences liquidity conditions, interest rates, and capital flows.
Macroprudential Measures: Manages systemic risks arising from volatile capital movements and financial market disruptions.
India’s fertiliser subsidy bill is projected to surge to nearly ₹3.4 lakh crore in 2026-27, almost double the Budget Estimate of ₹1.71 lakh crore. Rising global urea prices due to the West Asia conflict and supply disruptions have sharply increased import costs, putting pressure on government finances.
What is India’s Fertilizer Subsidy regime?
India’s fertilizer subsidy regime is an essential government support system that protects farmers from volatile global market prices. The government compensates manufacturers for the gap between production/import costs and the artificially low Maximum Retail Price (MRP). The subsidy is administered via a Direct Benefit Transfer (DBT) system through Aadhaar-authenticated Point of Sale (PoS) machines. The system operates as a two-tier regime distributed through a rigid digital verification network.
Dual-Track Subsidy Structure
Urea Subsidy Regime
Fixed Retail Price: Urea is sold at a government-controlled MRP.
Variable Subsidy Support: The government compensates manufacturers and importers for the gap between the fixed MRP and actual production/import costs.
Price Stability: Ensures affordable access to the most widely used fertiliser despite fluctuations in global prices.
Nutrient-Based Subsidy (NBS) Scheme
Coverage: Applies to Phosphatic and Potassic (P&K) fertilisers such as DAP and MOP.
Fixed Nutrient Subsidy: Subsidy is provided per kilogram of Nitrogen (N), Phosphate (P), Potash (K), and Sulphur (S).
Market-Based Pricing: Manufacturers determine retail prices while receiving government support based on nutrient content.
Dynamic Adjustment: Subsidy rates are revised periodically to offset global price volatility.
Recent Example: Union Cabinet approved ₹41,533.81 crore under NBS for the Kharif season to cushion farmers from fertiliser price shocks arising from the West Asia crisis.
Fertiliser Direct Benefit Transfer (DBT) Mechanism
Aadhaar-Based Authentication: Fertiliser sales are authenticated through Aadhaar-enabled systems.
Point-of-Sale (PoS) Verification: Subsidy claims are generated only after actual sale is recorded at retailer-level PoS devices.
Retail-Linked Subsidy Release: Fertiliser companies receive subsidy payments only after verified transactions.
Leakage Reduction: Strengthens monitoring and limits diversion, smuggling, and ghost beneficiaries.
Real-Time Tracking: Enables end-to-end monitoring of fertiliser movement and consumption.
How has the fertiliser subsidy burden evolved over recent years?
Persistent Budgetary Slippage
Underestimation: Government initially estimated ₹1.71 lakh crore subsidy requirement for FY27.
Actual Requirement: Sources indicate expenditure may approach ₹3.4 lakh crore.
Magnitude: Represents almost a 100% increase over the Budget Estimate.
Why are global fertiliser prices rising sharply?
Geopolitical Disruptions
West Asia Conflict: Ongoing regional conflict has disrupted global supply chains.
Supply Hoarding: Major suppliers, including China, are reportedly holding inventories amid uncertainty.
Shipping Constraints: Closure and disruptions around the Strait of Hormuz have increased transportation costs.
Surge in Import Prices
Pre-conflict Prices: India’s recent urea imports previously cost around $410-420 per tonne.
Current Prices: Cost-plus-freight prices increased to $935-959 per tonne.
Magnitude: More than double the price observed a year earlier.
Import Dependence
External Vulnerability: Domestic production remains insufficient to fully meet national demand.
Strategic Procurement: Government is exploring greater sourcing from Russia to meet requirements.
How is India responding to emerging fertiliser shortages?
Large-scale Import Tenders
National Fertilizers Limited (NFL): Issued a global tender on May 27 to procure 17 lakh metric tonnes (LMT) of urea.
Indian Potash Limited (IPL): Issued a tender in April for importing 25 LMT of urea.
Domestic Production Expansion
Production Push: Government seeks to ramp up domestic fertiliser production.
Supply Assurance: Strategy aims to reduce import vulnerability and stabilise prices.
Diversification of Sources
Russia Option: Government is examining additional imports from Russia to supplement supplies.
Supply Security: Diversification reduces dependence on a limited set of suppliers.
What Fiscal Pressures Are Emerging from Rising Fertiliser Subsidies?
Escalating Subsidy Burden: Fertiliser subsidy requirements for FY27 may rise to nearly ₹3.4 lakh crore against the Budget Estimate of ₹1.71 lakh crore, creating significant expenditure pressures.
Frequent Budget Overruns: Actual fertiliser subsidy spending has consistently exceeded budgeted allocations, as seen in FY26 when expenditure reached ₹2.11 lakh crore against a revised estimate of ₹1.86 lakh crore.
Widening Fiscal Deficit: Higher subsidy outgo increases government revenue expenditure and complicates efforts to maintain the fiscal deficit target of 4.4% of GDP.
Reduced Fiscal Space: Rising subsidy commitments constrain the government’s ability to allocate resources towards capital expenditure, infrastructure, and social sector investments.
Import-Driven Fiscal Vulnerability: Dependence on imported fertilisers exposes public finances to global price shocks, increasing subsidy liabilities during periods of geopolitical and supply-chain disruptions.
Why has fertiliser become one of the ‘Three Fs’ of fiscal concern?
In the context of India’s current macroeconomic challenges, the “Three Fs” refer to Fuel, Fertiliser, and Foreign Exchange (Forex).
External Payment Pressure
Fertiliser Imports: Payments are made largely in foreign currency.
Fuel Imports: Rising energy costs increase import expenditure.
Gold Imports: Foreign exchange outflows rise due to gold purchases.
Rupee Pressure
Current Account Impact: High import bills increase foreign exchange demand.
Currency Stability: Greater dollar demand exerts pressure on the rupee.
Twin Stress: Simultaneously affects fiscal deficit and external sector balances.
What concerns exist regarding diversion and misuse of subsidised fertilisers?
Subsidy Leakage
Industrial Diversion: Concerns exist that fertilisers intended for farmers are being diverted for industrial use.
Monitoring Challenge: Excess distribution raises suspicion of leakage.
Distribution Anomalies
Requirement Mismatch: Officials indicated that if one sack is sufficient, some states distribute two sacks.
Excess Allocation: Reports suggest distribution of five to seven sacks in certain areas.
Policy Concern: Such quantities exceed agronomic requirements and indicate possible misuse.
Administrative Response
Inter-Ministerial Review: Matter is reportedly under discussion among agriculture, fertiliser, and finance ministries.
Targeted Delivery: States have been advised to align distribution with actual crop requirements.
What are the structural weaknesses in India’s fertiliser subsidy regime?
Price Distortion
Controlled Prices: Urea continues to be sold at roughly ₹300 per sack despite rising production and import costs.
Subsidy Dependence: Large gap between market price and retail price necessitates substantial government support.
Import Dependence
Feedstock Constraints: Domestic fertiliser production remains dependent on imported raw materials and energy inputs.
Supply Vulnerability: Global shocks are transmitted quickly into domestic subsidy expenditure.
Nutrient Imbalance
Urea Bias: Heavy subsidy on urea encourages excessive nitrogen application.
Soil Health Concerns: Imbalanced nutrient usage reduces long-term soil productivity.
Fiscal Sustainability Issues
Budget Volatility: Fertiliser subsidies fluctuate significantly with global commodity prices.
Opportunity Cost: Higher subsidy spending reduces fiscal space for capital expenditure and social investments.
Way Forward:
Urea Subsidy Reform: Gradually align urea with the Nutrient-Based Subsidy (NBS) framework to reduce price distortions and encourage balanced fertiliser use.
Boost Domestic Production: Expand urea manufacturing capacity, revive idle plants, and promote green ammonia to reduce import dependence.
Strengthen DBT and Monitoring: Enhance PoS-based tracking, Aadhaar verification, and supply-chain monitoring to curb diversion and subsidy leakages.
Promote Alternative Fertilisers: Scale up nano urea, biofertilisers, and customised fertilisers to improve nutrient efficiency and lower subsidy requirements.
Diversify Imports and Build Strategic Reserves: Secure long-term supply agreements with multiple countries and maintain buffer stocks to mitigate global supply shocks and price volatility.
Conclusion
India’s fertiliser subsidy challenge underscores the growing vulnerability of its agricultural support system to global commodity shocks and geopolitical disruptions. The projected surge in subsidy expenditure reflects structural issues such as import dependence, administered urea pricing, and subsidy leakages. Balancing farmer welfare with fiscal prudence has emerged as a critical policy priority.
Value Addition
One Nation One Fertilizer (ONOF) Scheme
Uniform Branding: All subsidised fertilisers are marketed under the ‘Bharat’ brand.
Examples:Bharat Urea, Bharat DAP, Bharat MOP.
Standardisation: Ensures uniform product identity across states.
Consumer Awareness: Simplifies fertiliser recognition for farmers.
Quality Assurance: Strengthens trust in subsidised fertiliser distribution.
PYQ Relevance
[UPSC 2023] What are the direct and indirect subsidies provided to the farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies
Linkage: The PYQ examines the role, sustainability, and challenges of agricultural subsidies in India. The article focuses on the rising fertiliser subsidy burden, highlighting concerns related to subsidy efficiency, fiscal sustainability, and reform of agricultural support mechanisms.
The Agricultural and Processed Food Products Export Development Authority (APEDA) facilitated the first export consignment of GI-tagged Tezpur Litchi from Assam to Dubai on 7 June 2026, boosting agricultural exports from the North Eastern Region.
Key Highlights
Product Exported: GI-tagged Tezpur Litchi
Quantity: 1 metric tonne
Export Destination: Dubai
State: Assam
Facilitating Agency: APEDA
Significance: First international shipment of Tezpur Litchi.
About Tezpur Litchi
Tezpur Litchi is renowned for its: Exceptional sweetness, Bright-red appearance, Distinctive aroma, Superior eating quality, High consumer preference
Major Varieties: Bombaya, Bilati, Elaichi, Piyaji, and Sahi
[2018] With reference to organic farming in India, consider the following statements: 1.‘The National ‘Programme for Organic Production’ (NPOP) is operated under the guidelines and ‘directions of the Union Ministry of Rural Development. 2.‘The Agricultural and Processed Food Product Export Development Authority ‘(APEDA) functions as the Secretariat for the implementation of NPOP. 3.Sikkim has become India’s first fully organic State. Which of the statements given above is/are correct?
The Ministry of New and Renewable Energy (MNRE) organised a National Workshop and launched the Small Hydro Power Development Scheme Guidelines (FY 2026-27 to FY 2030-31) to accelerate the development of the SHP sector in India.
About the Small Hydro Power Development Scheme
Implementing Ministry: MNRE
Scheme Period: FY 2026-27 to FY 2030-31
Objective:
Revival and expansion of the Small Hydro Power sector.
Harness untapped hydro potential.
Promote renewable energy diversification.
Capacity Target: Installation of approximately 1,500 MW of new SHP capacity.
Total allocation: ₹2,584.60 crore
In India, Small Hydro Power Projects are hydroelectric projects with an installed capacity of up to 25 MW
These projects generally involve:
Run-of-the-river systems.
Minimal reservoir requirements.
Lower environmental impacts compared to large dams.
[2024] Recently, the term “pumped-storage hydropower” is actually and appropriately discussed in the context of which one of the following?
Researchers from the Institute of Nano Science and Technology (INST) have discovered a new mechanism to generate and control spin currents using sound waves, opening avenues for low-power computing, spintronics, and quantum technologies.
Key Highlights
Researchers developed a method to generate magnon-based spin currents using Surface Acoustic Waves (SAWs).
The study was published in Physical Review B.
It offers a pathway towards Energy-efficient electronics, Quantum computing, Next-generation communication technologies.
Why is this Important?
Limitations of Conventional Electronics: Traditional electronics use: Movement of electric charge (electrons)
Problems: Heat generation, Energy loss, Reduced efficiency at smaller scales
What is Spintronics?
Spintronics (Spin Electronics) is a technology that uses the Spin of electrons. Along with their charge to process and store information.
Advantages
Lower power consumption.
Faster processing speeds.
Reduced heat generation.
Higher data storage density.
What are Magnons?
Magnons are Quanta of spin waves or collective disturbances in the magnetic ordering of a material.
What are Surface Acoustic Waves (SAWs)?
Surface Acoustic Waves are Sound waves that travel along the surface of a material.
Characteristics
Cause tiny mechanical vibrations.
Commonly used in: Mobile communication filters, Sensors, Signal processing devices.
[2022] Which one of the following is the context in which the term “qubit” is mentioned?
The Government highlighted major infrastructure achievements over the past 12 years across transport, logistics, water, housing, energy, and digital sectors, emphasizing their role in achieving Viksit Bharat 2047.
1. Railways
Railway budgetary support increased from ₹32,000 crore (2014-15) to ₹2.78 lakh crore (2026-27).
India’s Logistics Performance Index rank: 54 (2014) to 38 (2023).
Digital Logistics Platforms
ULIP (2022).
Logistics Data Bank (2016).
NETC FASTag (2016).
PRAGATI
Launched: 2015.
Projects reviewed: 382.
Value: ₹85 lakh crore.
7. Water Infrastructure
Jal Jeevan Mission
Launched: 2019.
Rural tap coverage: 17% at launch to 81.94% (June 2026).
Households covered: 15.86 crore.
Other Initiatives
PMKSY (2015), Namami Gange (2014), Ken-Betwa Link Project (2021, FloodWatch India App, and Dam Safety Act, 2021.
8. Housing
PMAY-U
Launched: 2015.
Houses sanctioned: 125.31 lakh.
Houses completed: 98.10 lakh.
PMAY-U 2.0: One crore additional beneficiaries by 2028-29.
PMAY-G
Launched: 2016.
Houses completed: 3.06 crore.
SWAMIH Fund
Launched: 2019.
Corpus: ₹15,531 crore.
AMRUT
Launched: 2015.
Projects sanctioned: ₹2.79 lakh crore.
9. Energy
Installed capacity: 248 GW (2014) to 532.74 GW (2026).
Power shortage: 4.2% to 0.03%.
Renewable Energy
India is: 3rd largest clean energy capacity holder and 4th largest installed wind energy producer.
Important Schemes
PM Surya Ghar: Muft Bijli Yojana (2024).
GOBARdhan Scheme (2018).
Saubhagya Scheme (2017).
International Initiatives
International Solar Alliance: 125 member countries.
Global Biofuels Alliance: 33 countries and 14 organisations.
10. LPG and Clean Cooking
LPG coverage: 55.9% (2014) to 107.2% (2026).
LPG consumers: 14.51 crore to 33.39 crore.
PM Ujjwala Yojana
Launched: 2016.
Additional 25 lakh connections approved in FY26.
11. Digital Infrastructure
Internet connections: 25.15 crore to 100.29 crore.
Broadband:6.1 crore to 99.56 crore.
Monthly data usage: 61.66 MB to 24.01 GB.
PM-WANI
Launched: 2020.
Wi-Fi hotspots: 4.10 lakh+.
5G
Available in 99.9% districts.
5.08 lakh BTS installed.
JAM Trinity
Jan Dhan, Aadhaar and Mobile.
UPI
March 2026: 2,264 crore transactions and ₹29.53 lakh crore value.
Operational in UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar.
Important Digital Platforms
DigiLocker, UMANG, Common Service Centres, eHospital, PM e-Vidya, DIKSHA, SWAYAM.
[2025] Consider the following statements: I. Indian Railways have prepared a National Rail Plan (NRP) to create a future ready railway system by 2028. II. Kavach’ is an Automatic Train Protection system, development in collaboration with Germany. III. ‘Kavach’ system consists of RFID tags fitted on track in station section. Which of the statements given above are not correct?
India’s flagship decentralised solar schemes, PM Surya Ghar Yojana and PM-KUSUM, have achieved only about 13 GW capacity against a target of 40 GW. This has prompted the Parliamentary Estimates Committee to examine implementation bottlenecks.
Background
Solar Dominance: Solar power now accounts for nearly 30% of India’s installed electricity generation capacity.
Rapid Capacity Addition: India added more than 50 GW of solar capacity during the last two years.
Global Position: India added more solar power in 2025 than any country except China.
Why is Decentralised Solar Power Becoming Central to India’s Energy Transition?
Decentralised solar power (DRE) generates electricity at or near the point of consumption rather than relying on large, centralized power plants. This approach eliminates long-distance transmission losses and empowers local communities by providing affordable, continuous, and reliable energy
Rising Electricity Demand: Increasing temperatures, urbanisation and economic growth are pushing electricity demand upwards.
Land Constraints: Availability of land for large utility-scale solar parks is becoming increasingly limited.
Climate Resilience: Distributed generation strengthens energy security during periods of high demand and climatic stress.
Peak Demand Management: Solar power significantly contributed to meeting daytime peak demand during April-May 2026.
Hydropower Constraints: Hydropower capacity expansion has stagnated, reducing its ability to meet incremental demand.
Stagnating Share: Hydropower’s share in India’s installed power capacity has declined from around 25% in the early 1990s to about 10% today, despite growth in overall electricity demand.
Limited Capacity Addition: India added only about 5 GW of large hydropower capacity between 2014 and 2024, compared to over 100 GW of solar capacity during the same period.
Current Capacity: India’s installed hydropower capacity stands at roughly 48-49 GW, while solar capacity has crossed 100 GW.
Climate Vulnerability: Erratic monsoons, changing river flows, environmental clearances, rehabilitation issues, and long gestation periods have slowed hydropower expansion.
Energy Transition Implication: With hydropower unable to expand rapidly enough to meet rising demand, solar, particularly decentralised solar, is increasingly expected to meet incremental electricity requirements.
What are the Key Features of PM Surya Ghar Yojana and PM-KUSUM?
PM Surya Ghar Yojana
Household Coverage: Targets rooftop solar installation in 1 crore households.
Free Electricity: Provides electricity benefits of up to 300 units per month.
Capital Subsidy: Offers direct subsidy support for rooftop solar equipment.
Decentralised Generation: Encourages household-level electricity production and grid integration.
Progress
Target
Achievement
1 crore households connected
40.52 lakh households
30 GW installed capacity
12 GW
PM-KUSUM
The Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) is an initiative by the Ministry of New and Renewable Energy (MNRE). It provides farmers with heavy subsidies for solar agricultural pumps and solar power plants, designed to generate income, provide daytime irrigation, and replace expensive diesel or grid power
Farmer-Centric Design: Supports farmers in establishing decentralised solar infrastructure.
Solar Plants on Unused Land: Enables installation of small solar plants on unused agricultural land.
Solar Water Pumps: Supports both standalone and grid-connected solar irrigation pumps.
Additional Income: Allows sale of surplus electricity to the grid.
Cost Reduction: Reduces diesel and conventional electricity expenses.
Progress
Target
Achievement
14 lakh solar water pumps
10.9 lakh
2.5 lakh solar irrigation pumps
15,000
30 GW decentralised solar capacity
1.2 GW
How Successful Have These Flagship Programmes Been?
Combined Budget: Approximately ₹95,000 crore.
Combined Capacity Created: About 13 GW as of 31 May 2026.
Target Capacity: 40 GW by the end of the current financial year.
Achievement Gap: Only around one-third of the targeted capacity achieved.
PM-KUSUM Delay: Initially targeted for completion by 2022 but extended until the end of the current financial year due to pandemic-related disruptions.
Best Performing Component: Standalone off-grid solar water pumps under PM-KUSUM.
How is Performance Highly Uneven Across States?
PM Surya Ghar Better Performers
State
Installations
Households Connected
Subsidy (₹ crore)
Gujarat
6,81,180
9,77,754
9,277
Maharashtra
6,04,522
9,42,378
23,149
Uttar Pradesh
5,62,656
5,77,103
19,095
Kerala
2,52,803
2,58,959
382
Rajasthan
2,15,842
2,23,066
30,597
PM Surya Ghar Underperformers
State
Installations
Households Connected
Subsidy (₹ crore)
West Bengal
1,695
1,758
1,868
Punjab
14,470
16,641
20,693
Karnataka
19,793
30,395
27,725
Bihar
20,272
20,905
15,405
Tamil Nadu
72,988
85,743
15,701
How Do Power Subsidies Affect Solar Adoption?
Distorted Economic Incentives: Free or highly subsidised electricity reduces the financial attractiveness of investing in rooftop solar systems.
Reduced Payback Benefits: Consumers receiving subsidised electricity perceive limited savings from solar installations, resulting in lower adoption rates.
High Upfront Cost Sensitivity: Households are less willing to incur substantial initial costs for solar systems when electricity is already available at little or no cost.
Subsidy-Driven Consumer Behaviour: Existing subsidy regimes encourage continued dependence on grid electricity rather than self-generation through rooftop solar.
Policy Contradiction: Simultaneous promotion of rooftop solar and provision of free electricity creates conflicting incentives for consumers.
Official Recognition: The Ministry of New and Renewable Energy informed the Parliamentary Estimates Committee that free electricity schemes have emerged as a major constraint to PM Surya Ghar implementation.
Evidence from States
Punjab: Provides 300 free units to households and free electricity for agricultural tubewells; annual power subsidy expenditure exceeds ₹20,000 crore.
Karnataka: Electricity subsidy bill stands at approximately ₹27,000 crore.
Tamil Nadu: Electricity subsidy expenditure is around ₹15,700 crore.
Why Does the Upfront Cost Remain the Biggest Barrier?
High Initial Investment: Solar installations often require investment of several lakh rupees.
Delayed Returns: Benefits accrue gradually through reduced electricity bills and sale of surplus power.
Affordability Challenge: Many households and farmers struggle to mobilise upfront capital despite long-term savings.
Credit Constraints: Access to affordable financing remains limited.
Administrative Efficiency: Faster approvals and implementation improved adoption rates.
Evidence of Success: These states account for nearly 70% of the total rooftop solar installations achieved under PM Surya Ghar.
What are the Long-Term Economic Benefits of Decentralised Solar Power?
Subsidy Rationalisation: Reduces long-term dependence on recurring electricity subsidies.
Fiscal Savings: Full implementation of PM Surya Ghar could save approximately ₹75,000 crore annually in electricity-related expenditure.
Consumer Empowerment: Converts consumers into electricity producers.
Grid Stability: Reduces transmission losses and distribution burden.
Energy Security: Diversifies generation sources and reduces fuel dependence.
Climate Commitments: Supports India’s renewable energy and net-zero objectives.
What is the Growing Link Between Solar Power and Electricity Demand?
Demand Surge: Rising temperatures are increasing electricity consumption.
Climate Variability: Lower rainfall forecasts may reduce hydropower availability.
Summer Demand Peaks: Solar generation is increasingly meeting daytime peak loads.
Future Energy Mix: Solar is expected to become India’s second-largest source of electricity generation, overtaking hydropower.
Decentralisation Advantage: Distributed generation can cushion local supply-demand imbalances.
Conclusion
India’s clean energy transition increasingly depends on decentralised solar generation alongside utility-scale renewable projects. While PM Surya Ghar and PM-KUSUM have demonstrated their transformative potential, persistent barriers such as high upfront costs and distortionary electricity subsidies continue to constrain adoption. Bridging this gap through targeted incentives, affordable financing and subsidy reforms will determine whether decentralised solar power can become a major pillar of India’s energy security and climate strategy.
PYQ Relevance
[UPSC 2020] Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our Government for this purpose?
Linkage: The PYQ focuses on solar energy as a sustainable alternative to conventional power sources and government efforts to promote its adoption. PM Surya Ghar and PM-KUSUM are among India’s flagship initiatives for promoting decentralised solar energy. The article evaluates their achievements, implementation challenges, and significance for India’s energy security and clean energy transition.
India is set to begin large-scale cultivation of imidazolinone-resistant (IMI-resistant) mustard hybrids during the 2026-27 rabi season to tackle the parasitic weed Orobanche (Phelipanche), which significantly reduces mustard yields.
Key Highlights
Mustard is a major oilseed crop in India.
India imported around 16 million tonnes of edible oil and Worth nearly ₹1.6 lakh crore in 2024-25.
The new hybrids are resistant to IMI herbicides
Main target Orobanche/Phelipanche, a root parasitic weed.
What is Orobanche?
A parasitic weed that attaches to mustard roots. Draws water and nutrients from the host plant
Causes major yield losses in mustard cultivation.
Difficult to remove manually because it grows below the soil surface.
What are IMI-Resistant Mustard Hybrids?
These are mustard varieties resistant to imidazolinone herbicides.
Developed Through: Mutation Breeding. Not a genetically modified (GM) crop. Scientists select and preserve naturally occurring mutations.
Scientific Basis
The resistance is linked to changes in the Acetolactate Synthase (ALS) enzyme
Normally, IMI herbicides inhibit the ALS enzyme. The plant dies.
In resistant hybrids:
A DNA mutation changes ALS structure.
Herbicide cannot inhibit the enzyme.
Crop survives while weeds die.
Advantages
Effective control of Orobanche.
Reduces labour requirement for manual weeding.
Helps improve mustard productivity.
Supports reduction in edible oil imports.
Useful in labour-scarce periods during the rabi season.
[2018] With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements : 1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests. 2. GM mustard has the genes that allow the plant cross-pollination and hybridise. 3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University. Which of the statements given above is/are correct?
[A] 1 and 3 only [B] 2 only [C] 2 and 3 [D] 1, 2 and 3
