A Fresh Fertilizer Policy for India?

AGRICULTURE
23 Jan, 2023

NEWS HIGHLIGHT 

Theme : Agriculture and Related Issues
Paper:GS-3

 

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

TABLE OF CONTENT

  1. Context
  2. Consumption of Fertilizers in India
  3. Impacts of Current Policy
  4. Steps taken in 2022
  5. Road Ahead

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

Consumption of Fertilizers in India : 

  • 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.

Impacts of 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.

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.

Road Ahead : 

  • Promoting local fertilizers: Lower duty on imported phosphoric acid to raise the competitiveness of local fertilizer manufacturers, 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.

FAQs : 

  1. What is the state of Fertilizer Consumption in India?

ANS. 

  • 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.
  1. What is the recent step taken by the Government?

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