Why in the News?
The Union Cabinet has approved the Nutrient-Based Subsidy (NBS) rates for Rabi 2025–26 (October 1, 2025 – March 31, 2026) on Phosphatic and Potassic (P&K) fertilizers.
About the Nutrient-Based Subsidy (NBS) Scheme:
- Overview: Introduced on April 1, 2010, by the Department of Fertilizers, Ministry of Chemicals and Fertilizers, Government of India.
- Nature: A Central Sector Scheme providing fertilisers at subsidized rates based on nutrient content rather than product type.
- Nutrients Covered: Subsidy is fixed per kilogram of Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S).
- Coverage: Applies to 28 grades of Phosphatic and Potassic (P&K) fertilizers, including Di-Ammonium Phosphate (DAP), NPKS grades, and fortified fertilizers containing micronutrients such as zinc and molybdenum.
- Exclusion: Urea is not covered under NBS; it remains price-controlled and sold at a fixed MRP by the government.
- Objective: Ensures balanced fertilizer use (optimal N: P: K ratio of 4:2:1) to maintain soil fertility, increase productivity, and promote sustainable agriculture.
- Subsidy Mechanism: Subsidy is paid directly to fertilizer manufacturers/importers based on notified per-kg nutrient rates, enabling sale to farmers at affordable prices.
- Rationale: Aims to insulate farmers from international price volatility of fertilizer inputs such as urea, DAP, MOP, and sulphur, while maintaining fiscal prudence.
- Additional Support: Fertilizers fortified with secondary, and micronutrients are eligible for additional subsidy.
- Institutional Role: Department of Fertilizers monitors implementation; state agriculture departments ensure field-level availability and prevent diversion.
- Major Benefits:
- Ensures timely and affordable access to fertilizers.
- Promotes balanced nutrient application and soil health.
- Supports food security and agricultural productivity.
- Rationalizes government subsidy expenditure.
- Encourages domestic fertilizer production and reduces import dependence.
- Issues:
- Exclusion of urea leads to its overuse and nutrient imbalance.
- Rising fiscal burden; fertiliser subsidy is India’s second-largest after food subsidy.
- Continued chemical fertiliser dependence affects long-term soil sustainability.
| [UPSC 2020] With reference to chemical fertilizers in India, consider the following statements: 1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. 2. Ammonia, which is an input of urea, is produced from natural gas. 3. Sulphur, which is a raw material for Phosphoric acid fertilizer, is a by-product of oil refineries. Which of the statements given above is/are correct? Options: (a) 1 only (b) 2 and 3 only* (c) 2 only (d) 1, 2 and 3 |
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