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Subject: Agriculture

  • Overuse of Urea in India and its Implications

    urea

    Central idea

    • Rising urea consumption: The use of urea has continued to increase, leading to a decline in crop yield response to fertiliser use, and an imbalance in the nutrient application.
    • Unbalanced fertilization: The nutrient-based subsidy regime is a failure in promoting balanced fertilization.
    • Several measures failed: The measures introduced by the Indian government to reduce urea consumption, such as neem-coating, smaller bags, and Nano Urea, have not been successful.

    Do You Know?

    The ideal NPK use ratio for the country is 4:2:1, whereas it was 6.5:2.8:1 in 2020-21 and 7.7:3.1:1 in 2021-22. In the recent 2022 kharif season, the ratio got further distorted to 12.8:5.1:1.

    What is Urea?

    • Urea is a commonly used nitrogen-containing fertiliser that provides crops with the necessary nutrients for growth and development.
    • It is a white, crystalline solid that is soluble in water and has a high nitrogen content, with around 46% nitrogen by weight.
    • Urea is made from ammonia and carbon dioxide and is used extensively in agriculture due to its high nitrogen content and affordability.
    • It is a major source of nitrogen for crops, and when applied in the right amounts, it can improve crop yields and increase overall agricultural productivity.

    Urea usage in India

    urea

    Policy moves related to Urea

    The introduction of these measures was aimed at reducing urea consumption in the country.

    • Neem-coated urea: In May 2015, the Indian government mandated the neem-coating of all urea manufactured in the country as well as imported urea to illegal diversion for non-agricultural use.
    • Reduced size: Later, in March 2018, the government replaced 50-kg urea bags with 45-kg bags.
    • Liquid Nano Urea: Recently, in June 2021, the Indian Farmers’ Fertiliser Cooperative (IFFCO) launched a liquid fertiliser called ‘Nano Urea’.

    Ineffectiveness of the above measures

    • Despite the introduction of these measures, urea consumption in the country has not decreased.
    • In fact, sales of urea crossed a record 35.7 million tonnes (mt) in the fiscal year ended March 31, 2023.
    • Although consumption dipped in the initial two years after neem-coating was fully enforced, it reversed from 2018-19.

    Failure of the nutrient-based subsidy (NBS) regime

    • The government introduced the nutrient-based subsidy (NBS) regime in April 2010.
    • The regime fixed a per-kg subsidy for each fertiliser nutrient – nitrogen (N), phosphorus (P), potash (K), and sulphur (S).
    • The aim was to promote balanced fertilisation and discourage farmers from applying too much urea, di-ammonium phosphate (DAP) and muriate of potash (MOP).
    • However, the data shows that nutrient imbalance has worsened, with urea consumption rising by over a third since 2009-10.
    • Nitrogen use efficiency (NUE) has declined from 48.2% in 1962-63 to 34.7% in 2018.

    Cost of overdose fertilization

    • Fertilisers are essential for plant growth and grain yield, but the overuse of urea and other fertilisers has led to an imbalance in nutrient application.
    • Crop yield response to fertiliser use has decreased, with the disproportionate application of nitrogen by farmers being a key reason.
    • Recent research has shown that nitrogen use efficiency has declined in India, making it necessary to promote the use of other fertilisers containing different nutrients.

    Way forward

    To address the issue of rising urea consumption, two approaches can be adopted.

    • Disincentivise: The first is to raise prices, but this is not politically feasible.
    • Improve nitrogen use efficiency (NUE): One way to achieve this is to make the incorporation of urease and nitrification inhibitors compulsory in urea.

    Some other potential solutions include:

    • Promoting the use of organic fertilisers: Such as compost and manure, can improve soil health and reduce the need for synthetic fertilisers. This can also reduce the risk of environmental pollution and improve the sustainability of agriculture.
    • Encouraging precision agriculture: Such as soil testing, can help farmers apply fertilisers in the right amounts and at the right time, reducing wastage and increasing nutrient use efficiency.
    • Promoting crop rotation and intercropping: Planting different crops in rotation or together can help maintain soil fertility and reduce the need for synthetic fertilisers.
    • Increasing public awareness and education: Educating farmers and the public on the importance of sustainable fertiliser use and the potential risks of overusing synthetic fertilisers can help promote more sustainable agricultural practices.

     

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  • What is the Open-Source Seeds Movement?

    seed

    Central idea

    • The article discusses the concept of open-source software and its parallels with open-source seeds.
    • Richard Stallman pioneered the Free Software Movement and developed the General Public License (GPL) to protect users’ rights and prevent code misappropriation.
    • Farmers have been innovating and sharing seeds without intellectual property rights (IPR) claims for centuries.

    Backgrounder: Plant Breeders’ Rights

    • Plant breeders’ rights (PBR) granted exclusive rights to breeders and developers of new varieties.
    • Farmers’ rights were limited under this regime.
    • The TRIPS agreement established a global IPR regime over plant varieties.
    • The consolidation of the seed sector raised concerns about the freedom to innovate.

    Forms of IPR Protection in Agriculture

    • There are now two forms of IPR protection in agriculture: PBR and patents.
    • Together, they restrict farmers’ rights and the freedom to develop new varieties.
    • The use of genetically modified seeds and IP claims triggered many problems, including State intervention on Bt cotton seeds in India.
    • The decline of public sector breeding and the dominance of the private sector in the seed sector increased the need for alternatives.

    What are Open Source Seeds?

    • The success of open-source software inspired a solution for seeds.
    • In 1999, a Canadian plant breeder named T.E. Michaels suggested an approach to seeds based on the principles of open-source software.
    • In 2012, Jack Kloppenburg launched the Open Source Seeds Initiative (OSSI) in Wisconsin.
    • Agrecol launched another initiative in Europe, and similar programs have come up worldwide.

    Open Source Seeds Initiatives in India

    • In India, the Hyderabad-based Centre for Sustainable Agriculture (CSA), part of the Apna Beej Network, developed a model incorporated into an agreement between CSA and the recipient of the seed/germplasm.
    • CSA’s Open Source Seeds Initiative uses a contracts approach similar to Agrecol’s strategy.
    • The number of seed firms using open-source models and the crop varieties and seeds made available thereunder is small but growing.
    • India is yet to test and adopt it widely.

    Potential Applications of Open-Source Seeds

    • Open-source principles can help promote farmer-led participatory plant-breeding exercises.
    • Traditional varieties often lack uniformity and aren’t of excellent quality, but open-source principles can facilitate testing, improvisation, and adoption.
    • Open-source principles can be used in farmer-led seed conservation and distribution systems.
    • The government and other stakeholders can consider adopting this approach to more widely adopt traditional varieties.

  • How India’s Sugar Exports to the world are surging?

    sugar

    Central idea:  India’s success story in sugar exports

    • India’s sugar exports have soared from $810.9 million in 2017-18 to $4.6 billion in 2021-22, and could cross $5.5 billion in the fiscal year ending March 31.
    • The increase is significant in quantity terms too, with India’s shipments increasing from a mere 0.46 lakh tonnes in 2016-17 to 110 lakh tonnes in 2021-22.
    • India has gone from being a marginal player in sugar exports five years ago to No. 2 in the world currently, behind only Brazil.

    Favourite destinations

    • The biggest importers of Indian raw sugar were Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt) and Malaysia (4.15 lt).
    • The country also exported 53.71 lt of white/ refined sugar, the leading destinations for which included Afghanistan (7.54 lt), Somalia (5.17 lt), Djibouti (4.90 lt), Sri Lanka (4.27 lt), China (2.58 lt), and Sudan (1.08 lt).
    • The highest decline in exports has been registered by the European Union (which produces sugar from beet, unlike India and Brazil that only crush cane): from 39.74 lt in 2017-18 to 8.02 lt in 2021-22.

    Which grades of sugar does India export?

    • Raw sugar is what mills produce after the first crystallization of juice obtained from crushing of cane.
    • This sugar is rough and brownish in color, with an ICUMSA value of 600-1,200 or higher.
    • ICUMSA is a measure of the purity of sugar based on color.
    • This raw sugar is processed in refineries for removal of impurities and de-colorization.
    • The end product is refined white cane sugar having a standard ICUMSA value of 45.
    • Till 2017-18, India mainly shipped plantation white sugar with 100-150 ICUMSA value, also known as low-quality whites or LQW in international markets.

    Reasons behind India’s surge in sugar exports

    • Indian raw sugar is free of dextran, unlike Brazilian raws.
    • Indian mills can supply raws with a very high polarization of 98.5-99.5%, which is higher than the polarization of raws from Brazil, Thailand, and Australia.
    • Indian raws today fetch a 4% premium over the global benchmark (New York No. 11 futures contract) price, while LQW sells at a $40/tonne discount to the world price (London No. 5 futures) for 45 ICUMSA whites.
    • Indonesia agreed to tweak its norms in December 2019 to enable imports from India, which further boosted India’s efforts to push exports of raws.

     

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  • ‘HD 3226’ Wheat can beat the heat

    wheat

    Scientists at the Indian Council of Agricultural Research (ICAR) have developed a new variety of wheat ‘HD 3226’ that can withstand high temperatures.

    HD 3226 Wheat

    • The wheat, known as “HD 3226”, has been developed specifically for cultivation in the northwest region of India, where temperatures can reach up to 42 degrees Celsius.
    • It took 10 years for ICAR to develop this variety.
    • It has been specifically developed for cultivation in the northwest region of India.

    Features of HD 3226 Wheat

    • More resilient to heat stress: The HD 3226 wheat variety is reportedly more resilient to heat stress than other varieties of wheat.
    • Higher yields: The HD 3226 wheat variety can produce up to 12-15% higher yields in high-temperature conditions.

    Significance

    • The development of this new wheat variety is particularly important given the increasing frequency of heatwaves in the region due to climate change.
    • With rising temperatures, it is becoming more challenging for farmers to grow crops.

    Government approval and availability

    • The HD 3226 wheat variety has now been submitted to the Indian government for approval.
    • Once approved, it is expected to be available to farmers in the coming years.

     

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  • Telangana’s Teja Chilli is hot property in many nations

    chilli

    The burgeoning demand for the popular Teja variety of red chilli, famous for its culinary, medicinal and other wide-ranging uses, in the export market is proving to be a boon for the Telangana Agriculture Market.

    Teja Chilli

    • Teja or S17 is one of the hottest varieties of red chillies produced in India. (GI tag not accorded yet.)
    • The chilli is known and liked across the country for its fierce hot flavor and rich aroma.
    • Southern India is the main region of Teja or S17 red chilli production.
    • It has a capsaicin content of 0.50-0.70% making it more pungent and spicy.
    • The huge demand for Oleoresin, a natural chilli extract, is mainly driving the export of Teja variety to various spice processing industries in several Asian countries.

    Where it is produced?

    • Khammam district is the largest producer of Teja variety of red chilli.
    • It is the leading exporter of the pungent fruit.
    • The Mudigonda-based Oleoresin extraction firm of a Chinese company is engaged in export of the by product to its clients.

    Trade significance of this chilli

    • Teja variety of red chilli is being exported to China, Bangladesh and a few other south Asian countries from Khammam mainly through the Chennai port.
    • The export of Teja variety of red chilli is expected to grow from the present ₹2000 crore per annum to ₹2500 crore next year.

     

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  • MIIRA: India readies plan to popularise millets on world stage

    On the premises of G20, India is planning to propose the launch of a global initiative ‘MIIRA’ to encourage the consumption and production of millets.

    What are Millets?

    millet

    • Millets are a group of small-seeded grasses that are commonly cultivated and consumed as staple foods in many parts of the world, including Africa and Asia.
    • Millets are highly nutritious, gluten-free, and have a low glycemic index, making them an ideal food for people with various dietary requirements and health conditions.
    • They are cereals such as sorghum (jowar), pearl millet (bajra), foxtail millet (kangni/ Italian millet), little millet (kutki), kodo millet, finger millet (ragi/ mandua), proso millet (cheena/ common millet), barnyard millet (sawa/ sanwa/ jhangora), and brown top millet (korale).

    What is MIIRA?

    • “MIIRA” or Millet International Initiative for Research and Awareness will be aimed at coordinating millet research programmes at the international level.
    • For MIIRA to take off, India will contribute the “seed money” while each G20 member will later have to contribute to its budget in the form of a membership fee.
    • The secretariat will be in Delhi, the sources said, adding that this will, with India being a major producer of millets, ensure a flow of investment from the country’s industry and research bodies.
    • It is in line with the UN declaring 2023 as the International Year of Millets and the Centre’s plan to make India a global hub for millets.
    • It is launched keeping in mind the nutritional value and the climate-resilient nature of millets.

    Key objectives

    • MIIRA will aim to connect millet research organisations across the world while also supporting research on millet crops.
    • Besides setting up a web platform to connect researchers and holding international research conferences, the plan is also to promote millet consumption by raising awareness.

    Ecological significance of millets

    • Drought resistance: Millets are drought-resistant crops, which means that they can grow in areas with low rainfall and are less susceptible to the effects of drought. This makes them an ideal crop for farmers in regions that are prone to drought and other climate-related risks.
    • Soil health: Millets have shallow roots and can grow in poor soil, which means that they can be cultivated in marginal lands that are unsuitable for other crops. Millets also improve soil health by enhancing soil organic matter, reducing soil erosion, and improving soil structure and fertility.
    • Low carbon footprint: Millets have a low carbon footprint compared to other crops because they require less water, fertilizer, and pesticides. They are also less energy-intensive to produce and transport.
    • Resilience to climate change: Millets are known for their resilience to climate change and extreme weather events, such as floods and droughts. By promoting the cultivation and consumption of millets, countries can build resilience to the impacts of climate change and ensure food security in the face of these challenges.
    • Biodiversity conservation: Millets are often grown in mixed cropping systems, which promote biodiversity and can help conserve natural resources. The cultivation of millets also supports the conservation of traditional knowledge and local agricultural practices, which can be important for the resilience of rural communities in the face of climate change.

    Recent initiatives to promote Millets

    • Finance Minister described various types of millets as ‘Shree Anna’ in her budget speech.
    • To make India a global hub for Shree Anna, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence.
    • In 2018, the Agriculture Ministry declared some millets as ‘Nutri Cereals’ for their “high nutritive value”.

    How popular are millets globally?

    • Now grown in more than 130 countries, millets are the traditional food for more than half a billion people in Asia and Africa.
    • Gobally, jowar is the most widely grown millet crop; its major producers are the US, China, Australia, India, Argentina, Nigeria, and Sudan.
    • Bajra, another major millet crop, is mainly grown in some African countries and India, where millets are mainly a kharif crop.

     

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  • India’s Agricultural Farm Exports data expected to reach a new high

    export

    India’s agricultural exports are poised to scale a new peak in the financial year ending March 31, 2023. But so are imports, bringing down the overall farm trade surplus.

    Agriculture trade in a nutshell

    • India’s agricultural exports are expected to reach a new high in FY 2022-23.
    • The value of farm exports from April-December 2022 was 7.9% higher than the same period of the previous year, totalling $39 billion.
    • Imports of agricultural produce have also grown 15.4% from $24.1 billion in April-December 2021 to $27.8 billion in April-December 2022, resulting in a shrinking of the overall farm trade surplus.
    • As a result, there has been a further shrinking of the surplus on the farm trade account.

    Note: This newscard provides useful insights regarding agricultural exports-import balance. Aspirants are not advised to memorize the numbers but imbibe the trend.

    Drivers of Exports

    The two big contributors to India’s agri-export growth have been rice and sugar.

    (1) Rice

    • India in 2021-22 shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion.
    • That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.
    • In the current fiscal, the growth has been primarily led by basmati rice.
    • Its exports have gone up by 40.3% in value (from $2.38 billion in April-December 2021 to $3.34 billion in April-December 2022).
    • The corresponding increases have been less for non-basmati exports: 3.3% in value ($4.51 billion to $4.66 billion) and 4.6% in quantity (12.60 mt to 13.17 mt).

    (2) Sugars

    • Sugar exports hit a record value of $4.60 billion in 2021-22, as against $2.79 billion, $1.97 billion, $1.36 billion, and $810.90 million in the preceding four fiscals.
    • This fiscal has seen a further surge of 43.6%, from $2.78 billion in April-December 2021 to $3.99 billion in April-December 2022.
    • India exports of rice and sugar are well on course to touch, if not top, $11 billion and $6 billion respectively in 2022-23.

    Key imports

    More than a general export slowdown, it’s the growth in imports that should be cause for concern.  This has come mainly from three commodities-

    (1) Edible oils

    • The first is vegetable oils, whose imports shot up from $11.09 bn in 2020-21 to $18.99 bn in 2021-22.
    • Imports now account for over 60% of the country’s estimated 22.5-23 mt annual oil consumption.

    (2) Cotton

    • India has turned from a net exporter to a net importer of cotton.
    • India’s cotton exports reached an all-time-high of $4.33 bn back in 2011-12.
    • It remained at reasonably high levels until 2013-14 ($3.64 bn), before plunging to $1.62 bn by 2016-17 and $1.06 bn in 2019-20.
    • There was a recovery thereafter to $1.90 bn in 2020-21 and $2.82 bn in 2021-22.
    • But during this fiscal, imports have also soared from $414.59 million to $1.32 billion for the same period.

    Policy implications

    export

    • It can be seen how closely India’s farm performance is linked to international commodity prices.
    • The UN Food and Agriculture Organization’s (FAO) Food Price Index — having a base value of 100 for the 2014-16 period — averaged 122.5 points in 2012-13 and 119.1 points in 2013-14.
    • Those were the years when India’s agri-exports were at $42-43 billion. As the index crashed to 90-95 points in 2015-16 and 2016-17, so did exports to $33-34 billion.
    • The exports recovery in 2020-21 and 2021-22 happened along with — rather, on the back of — rising global prices and the FAO index averaging 102.5 points and 133 points in the two years.

    Inferences from this trend

    Ans. India’s farm exports will slow down in the months ahead.

    • Moreover, this could be accompanied by increased imports, as was the case from 2014-15 to 2017-18.
    • In the event, the focus of policymakers too, may have to shift from being pro-consumer (to the extent of banning/ restricting exports) to pro-producer (providing tariff protection against unbridled imports).

    Way forward

    • The government needs to do something about cotton and edible oils.
    • India’s cotton production has declined from the high of 398 lakh bales in 2013-14 to a 12-year low of 307.05 lakh bales in 2021-22.
    • Clearly, the effects of not allowing new genetic modification (GM) technologies after the first-generation Bt cotton are showing, and impacting exports as well.
    • A proactive approach is required in edible oils as well, where planting of GM hybrid mustard has been permitted with great reluctance — and which is now a matter before the Supreme Court.

     

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  • Eastern Rajasthan Canal Project (ERCP)

    canal

    Rajasthan has brought up the issue of the Eastern Rajasthan Canal Project or ERCP before the Prime Minister.

    Why in news?

    • The Chief Minister has said that it is not possible for the state government to bear the estimated project cost of around Rs 40,000 crore by itself.
    • The state wants the Centre to declare this as a national project so that the cost-sharing ratio between the Centre and the state becomes 90:10.

    Eastern Rajasthan Canal Project (ERCP)

    • ERCP was incepted with the aim of providing water to the drought-prone areas of the state.
    • It aims to harvest surplus water available during the rainy season in rivers in southern Rajasthan, such as the Chambal and its tributaries Kunnu, Parvati, and Kalisindh.
    • The project consists of the construction of two canals:
    1. Chambal Canal (which originates from the Chambal River)
    2. East Rajasthan Canal (which originates from the Mahi River)
    • The ERCP is expected to irrigate about 3.4 million hectares of agricultural land in Rajasthan and Madhya Pradesh states.
    • It is estimated to cost about Rs 51,000 crore and was expected to be completed by 2021.
    • The project was expected to benefit about 2.6 million farmers in Rajasthan and an additional 2.4 million in Madhya Pradesh.

    When was the ERCP conceived?

    • In the state Budget for 2017-18, then Rajasthan government had said that the ERCP will help fulfil the long-term irrigation and drinking water needs of 13 districts: Jhalawar, Baran, Kota, Bundi, Sawai Madhopur, Ajmer, Tonk, Jaipur, Karauli, Alwar, Bharatpur, Dausa, and Dholpur.
    • The project was approved by the Central Water Commission in 2017.
    • The state government had sent a proposal to the central government to declare ERCP as a project having national importance.

     

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    https://indianexpress.com/article/explained/ercp-rajasthan-rivers-project-ashok-gehlot-narendra-modi-8440734/

  • Domestic Goat as a Drug Factory

    goat

    India’s domestic goats have attracted the attention of biotechnology companies wishing to produce therapeutic proteins in bulk.

    Domestication of Goats

    • The domestic goat (Capra hircus) is a familiar presence in the rural landscape of India and in many developing countries.
    • The goat has played an important economic role in human communities from the time it was domesticated about 10,000 years ago.
    • It has even been argued that the domestication of goats was an important step in mankind’s shift from a hunting-gathering lifestyle to agricultural settlements.

    Various breeds found in India

    • The Food and Agriculture Organisation (FAO) estimates that the world has 830 million goats belonging to about 1,000 breeds.
    • India has 150 million from over 20 prominent breeds including-
    1. Marwari: Rajasthan has the most number of goats — the Marwari goat found here is hardy and well-adapted to the climate of deserts.
    2. Osmanabadi: Another hardy breed, found in the dry regions of Maharashtra, Telangana and North Karnataka is the Osmanabadi.
    3. Malabari: Also called Tellicherry of North Kerala, it is a prolific breed with low-fat meat, and shares these traits with the beetal goat of Punjab.
    4. Black Bengal goat: The east Indian Black Bengal goat is a vital contributor to the livelihoods of the rural poor of Bangladesh. It contributes over 20 million square feet of skin and hides to the world’s demands for leather goods, from fire-fighters gloves to fashionable handbags.
    5. Jamunapari: These goats from Uttar Pradesh were favoured as they yield 300 kg of milk during eight months of lactation. Once in England, the Jamunapari was bred with local breeds to produce the Anglo-Nubian, a champion producer of high-fat milk.

    Why are goats significant for farmers?

    • Goats have a quick generation time of about two years.
    • General benefits of goat milk out-powers the high-fat buffalo milk.
    • As many farmers lack the space or funds to rear cattle, the goat is rightly called “the poor man’s cow”.
    • There are no specific fodder requirements for goat. It can feed even on the neem leaves.

    Significance in therapeutics: Antithrombin production

    • Goats have attracted the attention of biotechnology companies wishing to produce therapeutic proteins in bulk.
    • The first success came with ATryn, the trade name for a goat-produced antithrombin III molecule.
    • Antithrombin keeps the blood free from clots, and its deficiency (usually inherited) can lead to serious complications such as pulmonary embolisms.
    • Affected individuals need antithrombin injections twice a week, usually purified from donated blood.
    • Recently, the monoclonal antibody cetuximab, which has been approved by the FDA as an anti-cancer drug against certain lung cancers, has also been produced in cloned goat lines.

    Why is it a significant development?

    • Transgenic goats carrying a copy of the human antithrombin gene have cells in their mammary glands that release this protein into milk.
    • It has been claimed that one goat could produce antithrombin equivalent to what was obtained from 90,000 units of human blood.
    • Large quantities can be made this way (10 grams per litre of milk).

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  • Why India needs a fresh Fertilizer Policy?

    fertilizer

    The government is expected to come out with a new fertilizer policy.

    What is the news?

    • A task force to examine the production and promotion of bio-fertilizer and organic fertilizers has already been set up under the NITI Aayog.

    How much fertilizer does India consume?

    • Total consumption of fertilizers between April and mid-December 2022 was 40.146 million metric tonnes (mmt), with production of 32.076 mmt and imports of 12.839 mmt.
    • The gap between demand and production is met through timely imports.

    How is fertilizers availability monitored?

    • Some steps undertaken by the government to improve the availability of fertilizers include:
    1. Assessment of state-wise requirements every month;
    2. 100% neem coating of urea, which increases nutrient efficiency;
    3. Monitoring of crop yield and soil health; and
    4. Online monitoring of the movement of fertilizers through the integrated Fertilizer Monitoring System.

    Impact of the current policy

    • Heavy subsidies: This has prompted many farmers to use chemical fertilizers like urea, which leads to higher productivity, but affects soil fertility in the long run.
    • Excessive and inefficient use of fertilizers: This leads to nutrient losses to the environment and could also result in drinking water contamination and impact human lives as a result of unsafe storage practices, as per a UN report.
    • Emission causing: With the subsidy being released directly to companies, technology-inefficient companies are being protected causing carbon emission.

    While attempts have been made to reform the fertilizer policy, they had to be rolled back after pressure from various quarters.

    Trend in government expenditure

    • Food subsidy: The government has spiked spending on food, fertilizer and fuel subsidy by nearly 70%.
    • Increased expenditure: For 2023-24, the fertilizer ministry might seek budgetary support of ₹2.5 trillion subsidy – outgo for FY23 has already crossed ₹2 trillion.
    • Increased import bill: Russia being a major exporter of liquefied natural gas -critical input for manufacturing of urea – has also led to higher prices.

    Steps taken in 2022

    • Implementation of DBT: The department of fertilizers disbursed subsidies for urea and nutrient-based subsidy, and implemented direct benefit transfer.
    • One Nation One Fertilizers Scheme: It also implemented the ONOF scheme which aims to ensure timely supply of fertilizers.
    • Model fertilizer retail outlets: The existing village, block/sub district/taluk and district level fertilizer retail outlets are being converted into model fertilizer retail outlets.

    Way forward

    • Promoting local fertilizers: Lower duty on imported phosphoric acid to raise the competitiveness of local fertilizer manufactures, and an incentive for promoting organic fertilizers, could be proposed.
    • Bio-fertilizer and organic fertilizers: A task force on bio-fertilizer and organic fertilizers has already been set up under NITI Aayog.
    • Curbing hefty subsidies: Considering the long-term interests of agriculture and the effects of using inorganic fertilizers, saving a huge amount on account of subsidy support is a step in the right direction.

     

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