Hindu Editorial Analysis : 20-September-2024
Fertilizer subsidies are essential for farmers in India. They help make crucial fertilizers like urea, DAP (Di-Ammonium Phosphate), and MOP (Muriate of Potash) affordable. However, the Indian government is now shifting its focus towards non-subsidised fertilizers to create a more balanced market.
Types of Fertilizer Subsidies
The Indian government provides subsidies for three main types of fertilizers:
- Urea: This fertilizer receives the highest subsidy.
- Phosphatic fertilizers: Such as DAP, which are important for plant growth.
- Potassic fertilizers: Like MOP, which help in root development.
In recent years, about 94% of fertilizer sales have been concentrated in just seven subsidised products, with urea being the most widely used.
Nutrient-Based Subsidy (NBS) Policy
The Nutrient-Based Subsidy (NBS) policy helps farmers by providing subsidies based on the nutrient content of fertilizers rather than their quantity. This encourages more balanced use of fertilizers.
Benefits of the NBS Policy
- Balanced Nutrient Application: Farmers are motivated to choose fertilizers that suit their soil, reducing the risk of overusing certain nutrients.
- Cost Savings: Lower fertilizer prices help reduce the overall costs for farmers.
- Environmental Sustainability: Balanced usage minimizes environmental issues, such as nitrogen leaching.
Regulation of Non-Subsidised Fertilisers
Non-subsidised fertilizers are also regulated by the Ministry of Chemicals and Fertilizers. This ensures:
- Controlled Pricing: Prices are kept fair to avoid exploitation of farmers.
- Quality Standards: Regulations ensure that fertilizers meet specific quality and composition standards.
- Registration and Licensing: Manufacturers must comply with necessary regulations.
- Import and Export Regulations: These are managed through permits to control supply.
Challenges Ahead
While moving towards a deregulated market, several challenges must be addressed:
- Market Dynamics: Balancing farmer affordability with manufacturer profit is complex.
- Quality Control: Maintaining consistent product quality requires strict oversight.
- Compliance Issues: Smaller manufacturers often struggle to meet regulations, leading to inconsistencies.
- Import Dependency: Heavy reliance on imports makes the market vulnerable to global fluctuations.
- Introducing New Products: The lengthy process for registering new fertilizers delays their entry into the market.
Way Forward
To improve the fertilizer market, several steps can be taken:
- Automatic Registration: Streamlining the registration of new products can help introduce them faster. This method has been successful for Water-Soluble Fertilisers (WSF).
- Mandatory Labeling: Clear labeling can improve quality and transparency in the market.
- Deregulation as a First Step: Starting with non-subsidised fertilizers can pave the way for future deregulation of urea and other fertilizers.
Why In News
In India, fertilizer subsidies play a crucial role in ensuring affordable inputs for farmers, especially for essential fertilizers like urea, DAP (Di-Ammonium Phosphate), and MOP (Muriate of Potash). These subsidies not only help farmers reduce costs but also support agricultural productivity and food security. However, with the complexities involved in decontrolling prices of politically sensitive fertilizers, the government is shifting its focus towards expanding the market for non-subsidised fertilizers, aiming for a more sustainable and competitive agricultural landscape.
MCQs about The Importance of Fertilizer Subsidies in India
- What is the primary role of fertilizer subsidies in India?
A. To increase the export of fertilizers
B. To ensure affordable inputs for farmers
C. To promote organic farming
D. To reduce the use of fertilizers
- Which of the following fertilizers receives the highest subsidy in India?
A. DAP (Di-Ammonium Phosphate)
B. MOP (Muriate of Potash)
C. Urea
D. NPK (Nitrogen, Phosphorus, Potassium)
- What does the Nutrient-Based Subsidy (NBS) policy promote?
A. Subsidies based on the total quantity of fertilizers
B. The exclusive use of organic fertilizers
C. Balanced nutrient application based on soil needs
D. Increased import of fertilizers
- Which of the following is a challenge faced in the regulation of non-subsidised fertilizers?
A. Overproduction of fertilizers
B. Quality control across various manufacturers
C. Decreased demand for fertilizers
D. Easy compliance with regulations
Boost up your confidence by appearing our Weekly Current Affairs Multiple Choice Questions
