Type: Schemes

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.

Why in the News?

After a decade (2015–2025), Paramparagat Krishi Vikas Yojana (PKVY) has evolved from a pilot cluster model into a national ecosystem of training, certification, and market access.

About Paramparagat Krishi Vikas Yojana (PKVY):

• Launch: Introduced in 2015 under the Ministry of Agriculture & Farmers Welfare as part of the National Mission for Sustainable Agriculture (NMSA) to promote organic and traditional chemical-free farming.
• Cluster-Based Model: Farmers form 20 ha+ clusters for collective organic adoption, resource sharing, and easier certification & marketing.
• Eligibility & Funding Flow: Open to farmers/institutions with land up to 2 ha; applications via Regional Councils → Annual Action Plans → States → DBT to farmers.
• Financial Support: ₹31,500/ha over 3 years, covering inputs, training, certification, and marketing.
• Certification Systems:

1. 1. NPOP (Third-Party Certification): for export and formal markets.
   2. PGS-India (Participatory Guarantee System): community-driven, peer-reviewed certification for domestic markets.
   3. Large Area Certification (LAC): initiated in 2020 to fast-track certification in areas with no prior chemical use, reducing conversion time.

• Digital Integration: Jaivik Kheti portal links farmers, buyers, input suppliers for transparent, traceable organic trade.

Achievements (as of Jan 2025):

• Scale: ₹2,265.86 crore released; 15 lakh ha organic area, 52,289 clusters, 25.3 lakh farmers.
• Certification: Sikkim fully organic, Lakshadweep & Dantewada LAC-certified, expansion to Nicobar & Ladakh.
• Digital Reach: 6.23 lakh farmers, 19,016 groups, 8,676 buyers on Jaivik Kheti portal.
• Institutional Growth: 9,268 FPOs formed; expanded market linkages for premium organic produce.
• Ecological Gains: Reduced chemical load, improved soil fertility, local input ecosystems strengthened.

Challenges:

• Yield Dip: Transitional productivity loss strains small farmers.
• Certification Costs: Verification and residue testing remain expensive.
• Market Gaps: Uneven price premiums and weak buyer networks.
• Cluster Variation: Success depends on local leadership and coordination.
• Sustainability: Post-funding continuity often uncertain; technical gaps persist.

Why in the News?

The Centre has announced the identification of 100 Aspirational Agriculture Districts under the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) to boost farm productivity, sustainability, and rural incomes.

What are Aspirational Agriculture Districts (AADs)?

• Overview: The AADs comprise 100 districts across 29 States and Union Territories with low productivity, moderate crop intensity, and limited access to agricultural credit.
• Selection Basis: Districts were chosen to ensure balanced regional representation, considering each state’s net cropped area and number of operational holdings.
• Purpose: Designed as focal points for agricultural transformation, akin to the Aspirational Districts Programme (ADP) model for holistic development.
• Objective: Accelerate agricultural growth and raise farmers’ income through data-driven governance, technology adoption, and scheme convergence.
• Leading States: Uttar Pradesh (12), Maharashtra (9), Madhya Pradesh & Rajasthan (8 each), and Bihar (7).
• Implementation Mechanism: Each district formulates a District Agriculture Development Plan (DADP) integrating existing central and state schemes for productivity enhancement, irrigation, crop diversification, and credit inclusion.
• Monitoring Framework: Employs a performance-based index with measurable outcome indicators for real-time progress tracking.

About Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY):

• Overview: Introduced in July 2025 by the Ministry of Agriculture and Farmers Welfare.
• Aim: Transform 100 low-performing agricultural districts into high-productivity, market-linked, and climate-resilient hubs.
• Design: Modeled on the Aspirational Districts Programme, emphasizing saturation-based development in agriculture.
• Key Objectives:
  • Boost productivity through modern technology and best practices.
  • Promote crop diversification and climate-resilient farming.
  • Expand irrigation coverage and credit access.
  • Strengthen post-harvest infrastructure, storage, and value addition at grassroots levels.
  • Build market linkages and sustainable practices for inclusive rural growth.
• Implementation Structure:
  • Convergence of 36 schemes from 11 Ministries/Departments, with no separate budget allocation.
  • District PMDDKY Committees, headed by Collectors, plan and execute projects.
  • 100 Central Nodal Officers (CNOs), mostly Joint Secretaries, monitor implementation.
  • A digital dashboard tracks 117 indicators across agriculture, irrigation, and markets.
• Budget & Duration: Convergence-based outlay of ₹24,000 crore annually for six years (FY 2025–31), benefiting 1.7 crore farmers.
• Expected Outcomes:
  • Improved productivity, resilience, and market efficiency.
  • Enhanced credit systems and localized agri-infrastructure.
  • Contribution toward “Viksit Bharat 2047” through sustainable agricultural transformation.