Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Nutrient Based Subsidy (NBS) scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nutrient Based Subsidy (NBS) scheme
Why in the News?
- The government has a Nutrient Based Subsidy (NBS) scheme to regulate the subsidy rates for Phosphatic and Potassic (P&K) fertilizers, based on international prices of raw materials and fluctuations in the global market.
| Note: Unlike P&K fertilizers, urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP), irrespective of its cost of production. |
About the Nutrient Based Subsidy (NBS) Scheme:
| Details | |
| About | • Introduced to provide subsidies on Phosphatic (P) and Potassic (K) fertilizers, based on nutrient content, excluding Urea. • Aims to promote balanced fertilization by encouraging use of multiple fertilizers for optimal plant nutrition. |
| Structure and Functioning | • Launched: 2010, under the Ministry of Chemicals and Fertilizers. • Implemented by the Department of Fertilizers, Ministry of Chemicals and Fertilizers. • Scope: Applies to Phosphatic and Potassic fertilizers (excluding Urea). • Governance: Subsidy rates are decided annually or bi-annually, based on market prices of fertilizers and raw materials. |
| Aims and Objectives | • Promote Balanced Fertilization: Encourages the use of Phosphorus and Potassium to complement Nitrogen and improve soil health. • Enhance Nutrient Efficiency: Aims to reduce over-reliance on Urea and improve use of other essential nutrients. • Support Farmers’ Affordability: Makes P&K fertilizers more affordable and accessible to farmers. |
About New Investment Policy (NIP) on Urea
Urea Pricing after NIP
|
PYQ:[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? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3 |
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What challenges does India face in fertilizer imports?
Note4Students
From UPSC perspective, the following things are important :
Mains level: India’s Imports and Exports; Impact of global crises on fertilizer;
Why in the News?
As the crises in Ukraine and Gaza persist, experts and policymakers are increasingly concerned about further rises in the costs of components essential for producing petroleum-based chemical fertilizers.
Current Scenario of Fertilizer Imports:
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How did the conflict in Ukraine impact the Global Fertilizer Market?
- Market Instability: Ongoing conflicts in Ukraine and Gaza are disrupting the stability of the global fertilizer market, particularly affecting the prices of oil and petroleum-based fertilizers.
- Supply Chain Disruptions: These conflicts affect global supply chains, particularly for fertilizer-producing countries such as Russia, which has been a significant source of fertilizer imports for India.
- Price Volatility: Higher oil prices due to geopolitical tensions in Ukraine and Gaza indirectly drive up costs of fertilizers, as these are often by-products of petroleum.
Its effects on India
- Rising Import Costs: Increased global fertilizer prices lead to higher import costs for India, putting pressure on the fertilizer subsidy budget.
- Potential Supply Constraints: India’s reliance on imports from conflict-affected regions like Russia and West Asia (including the Middle East) poses risks of reduced fertilizer availability.
- Budget Strain: India’s fertilizer subsidy allocation for 2023-24 was ₹1.79 lakh crore, with substantial amounts dedicated to both indigenous and imported fertilizers.
- Need for Self-Reliance: The conflicts underscore the importance for India to reduce dependency on imports by increasing domestic production capacity, promoting alternatives like nano urea, and exploring sustainable practices like natural farming.
Steps taken by the government:
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Way forward:
- Boost Domestic Production: Increase India’s fertilizer production capacity through investment in domestic infrastructure and support for nano urea and alternative sustainable fertilizers to reduce import dependency.
- Adopt Policy Reforms: Implement policies promoting self-reliance in fertilizers, with targeted subsidies and incentives for private, public, and cooperative sectors to enhance production and ensure affordable supply amidst global market volatility.
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Ammonium Nitrate imports cause concern
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ammonium Nitrate
Why in the News?
- Ammonium Nitrate (AN) imports from Russia have sharply increased affecting domestic fertilizer companies in India.
- The import of Ammonium Nitrate is concerning due to increased dependence on foreign supply, price disparity impacting domestic industries, and potential risks to national energy and security.
What is Ammonium Nitrate?
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Why is it a Cause of Concern?
- Ammonium Nitrate is a primary component in explosive mixtures like ANFO (Ammonium Nitrate Fuel Oil).
- Though not explosive on its own, it becomes highly dangerous when mixed with detonators like RDX or TNT.
- It has been used in Improvised Explosive Devices (IEDs) by terrorist groups.
- Accidents involving AN, like the Beirut port explosion in 2020, have raised serious concerns about its storage and handling.
- Its widespread use in fertilizers leads to concerns about environmental impact, especially when mishandled.
- Improper storage in populated areas can result in devastating accidents, which is why stringent regulations are in place to control its use, storage, and transport.
PYQ:[2015] What can be the impact of excessive/inappropriate use of nitrogenous fertilizers in agriculture? 1. Proliferation of nitrogen-fixing microorganisms in soil can occur. 2. Increase in the acidity of soil can take place. 3. Leaching of nitrate to the ground-water can occur. Select the correct answer using the codes given below: (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3 |
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Nano DAP: Revolutionizing Fertilizers in Indian Agriculture
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nano DAP
Mains level: Not Much
Introduction
- The interim budget presented by Finance Minister Nirmala Sitharaman introduces the expansion of Nano DAP application in agriculture.
Understanding Nano DAP
- DAP: DAP, or di-ammonium phosphate, is a widely used fertilizer in India, rich in phosphorus for plant root development.
- Nano DAPL: Introduced by Indian Farmers Fertiliser Cooperative (IFFCO), it is a liquid form of DAP with particle sizes less than 100 nanometers, enhancing its efficiency.
Advantages of Nano DAP
- Efficiency: Nano DAP’s small particle size allows it to penetrate seeds and plant openings more effectively, leading to higher seed vigor, increased chlorophyll, better photosynthetic efficiency, improved crop quality, and higher yields.
- Affordability: Nano DAP is cost-effective compared to conventional DAP, with a 500 ml bottle equivalent to a 50 kg bag of DAP, priced at only Rs 600.
- Convenience: The liquid form is easier to transport, store, and apply, making it farmer-friendly.
- Reduced Imports: Adoption of domestically-produced Nano DAP from Kalol, Gujarat, reduces the need for importing fertilizers, enhancing self-reliance and benefiting Indian agriculture.
Government’s Perspective
- Subsidy Relief: Nano DAP’s cost-effectiveness alleviates the government’s subsidy burden on fertilizers, offering fiscal relief.
- Self-Reliance: Producing Nano DAP domestically aligns with the goal of self-sufficiency in fertilizer production, reducing dependency on imports.
- Agricultural Advancement: Wider Nano DAP adoption supports agricultural growth, increasing food grain production and benefiting farmers.
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Approval of Nutrient-Based Subsidy (NBS) rates for Rabi and Kharif seasons in 2022-23 by the union cabinet.
Central idea
The article discusses the recent approval of Nutrient-Based Subsidy (NBS) rates for Rabi and Kharif seasons in 2022-23 by the union cabinet. It explains the NBS regime, its objectives, and challenges, emphasizing the need for a balanced approach to address economic, environmental, and distribution issues.
Understanding Nutrient-Based Subsidy (NBS) Regime:
- Subsidized Fertilizers: Farmers get fertilizers at lower rates based on nutrients like Nitrogen, Phosphorus, Potash, and Sulphur.
- Additional Subsidy: Fertilizers with extra nutrients like molybdenum and zinc receive added subsidies
Key Features of Nutrient-Based Subsidy (NBS):
- Targeted Subsidy: Fertilizers are subsidized based on the nutrients they contain, such as Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S).
- Additional Subsidy for Fortified Fertilizers: Fertilizers containing secondary and micronutrients, like molybdenum (Mo) and zinc, receive extra subsidies.
- Annual Determination of Rates: The government announces subsidy rates for Phosphatic and Potassic (P&K) fertilizers annually, considering factors like international and domestic prices, exchange rates, and inventory levels.
- Promotion of Balanced Fertilization: NBS aims to achieve an optimal balance (N:P:K = 4:2:1) in fertilization, improving soil health and crop yields.
- Implementation Authority: Administered by the Department of Fertilizers, Ministry of Chemicals & Fertilizers since April 2010.
Rationale for Nutrient-Based Subsidy (NBS):
- Efficient Resource Allocation: NBS ensures subsidies are directed to farmers based on nutrient requirements, promoting judicious use of fertilizers.
- Optimal NPK Fertilization: By encouraging a balanced nutrient ratio (N:P:K = 4:2:1), NBS aims to enhance soil health, leading to increased crop yields and farmer income.
- Sustainable Agricultural Practices: The policy supports environmentally sustainable practices by preventing imbalanced fertilizer usage, reducing soil degradation, and minimizing nutrient runoff.
- Food Security: Subsidized P&K fertilizers availability during Kharif season supports agricultural productivity, contributing to food security in India.
- Long-Term Soil Health: NBS promotes a long-term approach to soil management, addressing nutrient deficiencies and ensuring the fertility of agricultural land.
Nutrient-Based Subsidy (NBS) Rates Approval:
- Rabi Season 2022-23: Subsidy rates given for essential nutrients like Nitrogen, Phosphorus, Potash, and Sulphur.
- Kharif Season 2023: Approval for Phosphatic and Potassic (P&K) Fertilizers.
Objective of NBS Policy:
- Balanced Fertilization: Aims for an optimal balance (N:P:K=4:2:1) to enhance soil health and crop yield.
- Increased Income: Boosts farmers’ income through improved productivity.
- Reducing Subsidy Burden: Expects rational fertilizer use to ease the subsidy burden on the government.
Significance of NBS Subsidy:
- Agricultural Support: Ensures affordable availability of DAP and other P&K fertilizers during Kharif for better agricultural productivity.
- Resource Allocation: Crucial for efficient allocation, directing subsidies where needed for sustainable agriculture.
Challenges with NBS Policy:
- Economic and Environmental Costs: High subsidy burden strains the economy, leading to imbalanced fertilizer use and environmental issues.
- Black Marketing and Diversion: Subsidized urea faces illegal sale and smuggling to non-agricultural users.
- Leakage and Misuse: Inefficient distribution can lead to fertilizer misuse or non-delivery to intended farmers.
- Regional Disparities: Uniform policy may not cater to diverse regional needs, impacting nutrient application and productivity.
Way Forward for NBS Policy:
- Uniform Policy: A necessary step for essential nutrients (N, P, K) with considerations for regional variations.
- Cash Subsidy Alternative: Long-term shift to a per-acre cash subsidy for flexible fertilizer purchase.
- Balancing Act: Striking a balance between price control, affordability, and sustainable nutrient management for NBS success.
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Centre revises Fertilizer Subsidy
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizer Subsidy
Mains level: Read the attached story
Central Idea
- The Union Cabinet has announced revisions to the per-kilogram subsidy rates for nitrogen, phosphorus, potassium, and sulphur fertilizers under the nutrient-based regime, distinguishing between the October-March and April-September periods.
Subsidy Rate Changes
- Nitrogen (N): The subsidy per kilogram for nitrogen has decreased by 38% between the first half of FY-24 and the October-March period.
- Phosphorus (P): Phosphorus subsidy has been reduced by 49%.
- Potassium (K): Subsidy for potassium has seen an 84% reduction.
- Sulphur (S): Sulphur subsidy has been lowered by 32.5% during the same period.
Why discuss this?
- Fertilizer subsidies have been an integral part of India’s agricultural landscape since the Green Revolution of the 1970s-80s.
- This overview delves into the concept of fertilizer subsidies, their disbursement, and associated challenges.
Understanding Fertilizer Subsidy
- Origins: Fertilizer subsidies emerged during the Green Revolution to boost agricultural productivity.
- Subsidized Pricing: Fertilizer subsidy entails farmers purchasing fertilizers at prices below the Maximum Retail Price (MRP), often lower than market rates.
- Determining Subsidy Rates: Subsidy rates are influenced by the average price of imported fertilizer over the preceding six months.
Recipient and Payment of Subsidy
- Beneficiary: While fertilizer companies receive the subsidy, it ultimately benefits farmers who procure fertilizers at rates lower than market prices.
- Direct Benefit Transfer (DBT): Since March 2018, the government introduced a DBT system, where subsidy payments to companies occur post-actual sales to farmers via retailers.
- Retailer’s Role: Each of India’s 2.3 lakh retailers is equipped with a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
- Neem-Coated Urea Illustration: Neem-coated urea serves as an example. The government fixes its MRP at Rs. 5,922.22 per tonne, while domestic production costs about Rs. 17,000 per tonne. The variance is covered by the central government through subsidy disbursement.
Non-Urea Fertilizers
- Decontrolled Pricing: Non-urea fertilizers have pricing determined by companies rather than government intervention.
- Two Categories: These non-urea fertilizers are categorized into DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
- Flat Subsidy: The government provides a uniform per-tonne subsidy to maintain soil nutrition levels and ensure the affordability of other fertilizers.
Challenges Associated with Fertilizer Subsidies
- Low Nitrogen Use Efficiency (NUE): Indian soil exhibits low NUE, primarily found in Urea, leading to excessive use and groundwater pollution.
- Groundwater Contamination: Excessive fertilizer application contributes to groundwater contamination.
- Overuse: Urea applied to the soil results in losses as NH3 (Ammonia) and Nitrogen Oxides, surpassing WHO-prescribed limits, particularly in Punjab, Haryana, and Rajasthan.
- Health Impacts: Nitrate-contaminated water poses health risks, including “blue baby syndrome” in humans.
Conclusion
- Fertilizer subsidies are a crucial aspect of Indian agriculture, aiding farmers by reducing the cost of essential inputs.
- However, challenges such as overuse, groundwater pollution, and health concerns warrant a comprehensive approach to ensure sustainable and responsible fertilizer usage in the country.
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Challenge of Phosphorus Scarcity and Pollution: A Need for Innovative Solutions
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Phosphorus
Mains level: Read the attached story
Central Idea
- Phosphorus scarcity poses a growing challenge to global agriculture, with critical implications for food production and environmental sustainability.
- While the history of land fertilization dates back to ancient agricultural practices, the advent of synthetic fertilizers in the 19th century transformed modern agriculture.
- However, today’s reliance on synthetic fertilizers, particularly phosphorus, raises concerns about its scarcity and environmental impact.
Age-Old Challenge of Soil Fertilization
- Historical Origins: The challenge of fertilizing land dates back to the dawn of agriculture. Early human societies recognized the need to replenish soil nutrients depleted by repeated cycles of cultivation and harvest.
- Ancient Fertilization: Indigenous communities worldwide devised fertilization techniques, including the use of fish remnants and bird droppings (guano), to restore essential nutrients to the soil.
Revolutionizing Agriculture with Synthetic Fertilizers
- 19th Century Advancements: The 19th century witnessed significant progress in chemistry, leading to the creation of synthetic fertilizers. It also marked the identification of key nutrients: nitrogen, phosphorus, and potassium, the foundation of modern chemical fertilizers.
- Green Revolution’s Impact: The mid-20th-century Green Revolution accelerated the adoption of high-yield crop varieties and intensive fertilizer use, revolutionizing global food production.
About Phosphorus
| Need | Essential nutrient for plant growth, involved in photosynthesis, energy transfer, and root development. |
| Impact of Deficiency | Leads to stunted growth, reduced flowering, and poor fruit or seed development in plants. |
| Types | – Superphosphate
– Triple Superphosphate (TSP) – Diammonium Phosphate (DAP) |
| Application | Applied through broadcasting, banding, or direct placement with seeds during planting. |
| Benefits | Promotes strong root development, better flowering, fruiting, and overall plant health. |
| Environmental Considerations | Efficient use is required to prevent runoff and environmental issues like eutrophication. |
| Balanced Fertilization | Maintain a nutrient balance (N-P-K) in soil to avoid both deficiency and excess of phosphorus. |
Phosphorus Predicament
- Phosphorus Scarcity: Phosphorus is a finite resource primarily found in specific geological formations. It’s not only depleting but also causing environmental pollution when it enters water bodies, leading to algal blooms and eutrophication.
Geopolitical Complexities
- Global Phosphorus Reserves: Today, a small group of countries, including Morocco and the Western Sahara region, controls the majority of the world’s phosphorus reserves. This geopolitical control raises concerns.
- Cadmium Contamination: Phosphorus often coexists with cadmium, a heavy metal harmful to health. Cadmium-laden fertilizers can contaminate crops, posing health risks.
- Largest Importer: India is the world’s largest importer of phosphorus, primarily from cadmium-rich deposits in West Africa.
- Cadmium Susceptibility: Staple crops like paddy in India are vulnerable to cadmium absorption, potentially causing health issues.
Challenge of Phosphorus Disposal
- Loss and Wastage: Only a fraction of mined phosphorus is consumed through food; a significant amount is lost to water bodies due to excessive fertilizer application.
- Sewage Contamination: Most phosphorus consumed ends up in sewage. Inadequate sewage treatment allows phosphorus to accumulate in water bodies, fueling algal blooms and depleting oxygen.
Exploring Phosphorus Alternatives
- Precision Agriculture: Reducing chemical fertilizer use through precision agriculture offers one solution to address phosphorus scarcity without compromising yield.
- Circular Water Economies: Urban sewage can become a valuable source of phosphorus. Two key strategies:
-
- Source Separation Toilets: Collect urine, a concentrated waste stream rich in phosphorus, and convert it into local fertilizer.
- Recycling Wastewater and Sludge: Recover nutrients, including phosphorus, from sewage sludge through innovative methods like sludge mining.
Incentive Challenges
- Overuse of Fertilizers: In rural India, powerful farmers often sell fertilizers, encouraging smaller farmers to overuse them. This requires better extension services and awareness campaigns.
- Perceptions of Sewage: In urban India, sewage has historically been stigmatized, affecting regulations and wastewater treatment practices.
Rethinking the Approach
- Systemic Change: Fundamental changes are needed, including lowering sewage mining costs, allowing urban-mined phosphorus in agriculture, and shifting utility incentives from discharge standards to nutrient recovery.
- Multi-Beneficial Solution: Such changes can tackle multiple challenges, including geopolitical dependency, affordable fertilizers, improved water bodies, and public health benefits.
Conclusion
- The phosphorus dilemma is a pressing challenge with far-reaching consequences for agriculture, geopolitics, and the environment.
- As we grapple with dwindling phosphorus reserves and its environmental pollution, innovative solutions must be embraced.
- Precision agriculture and circular water economies, including source-separating toilets and sewage recycling, offer promising avenues to alleviate the scarcity issue.
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Urea Gold
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Urea Gold
Mains level: Urea Gold, Fortified fertilizer, significance, challenges and way forward
What’s the news?
- Late last month, Prime Minister Narendra Modi officially launched Urea Gold fertiliser.
Central idea
- In a significant development, Prime Minister Narendra Modi unveiled Urea Gold, a novel fertiliser product, created by Rashtriya Chemicals and Fertilizers Ltd (RCF), a state-owned entity. This pioneering formulation involves enhancing urea with sulphur to address crucial agricultural challenges.
What is Urea Gold?
- Traditional urea primarily consists of 46% nitrogen (N). Urea Gold represents a leap forward by combining 37% nitrogen and 17% sulphur.
- This innovative composition serves two primary purposes: bolstering soil quality and boosting nitrogen utilization efficiency.
Soil Deficiencies Nitrogen Utilization Efficiency (NUE)
- Soil Deficiencies in India
- Indian soils suffer from deficiencies, particularly in key nutrients like sulphur (S).
- This deficiency is particularly crucial for certain crops such as oilseeds and pulses, which play a significant role in India’s agricultural output. These crops require adequate sulphur for healthy growth and optimal yield.
- The deficiency in sulphur can hinder their productivity and affect the overall agricultural landscape.
- Nitrogen Utilization Efficiency (NUE) Challenge
- NUE refers to the proportion of applied nitrogen fertilisers that is effectively taken up by crops for growth and yield production.
- Only about 35% of the nitrogen from urea, a commonly used fertiliser, is utilized by crops in India.
- The rest, roughly 65%, is lost through various processes, including ammonia volatilisation into the atmosphere and leaching into the ground as nitrate.
Challenges in Urea Consumption in India
- Import Dependency: India heavily relies on imported urea due to insufficient domestic production. Around 7.6 million tonnes of urea were imported out of the total 35.7 million tonnes sold last fiscal year.
- Feedstock Dependency: The feedstock for domestic urea production, natural gas, is predominantly imported. This adds to the overall import dependence for the fertiliser.
- High Consumption: Urea is India’s most widely used fertiliser, with consumption rising from 26.7 million tonnes to 35.7 million tonnes between 2009-10 and 2022-23.
- Environmental Impact: Excessive urea usage contributes to environmental problems such as air and water pollution. Ammonia emissions and nitrate leaching are associated with these environmental challenges.
- Higher Input Costs: Inefficient fertiliser use due to low NUE leads to higher input costs for farmers. They need to apply more fertiliser to achieve desired yields.
Significance of Urea Gold
- Nutrient Enrichment: Urea Gold is a novel fertiliser fortified with sulphur (S). It contains 37% nitrogen (N) and 17% sulphur, addressing soil deficiencies that are critical for crops like oilseeds and pulses.
- Targeted Improvement: The sulphur content in Urea Gold addresses the specific nutrient requirements of oilseeds and pulses, which are crucial components of Indian agriculture and are significantly import-dependent.
- Packaging and Pricing Shift: Urea Gold’s introduction might entail packaging in 40-kg bags, adapting to the preferences of farmers.While exact pricing remains undisclosed, market trends suggest Urea Gold could be priced between Rs 400 to Rs 500 per 40-kg bag.
- Enhanced NUE: The sulphur-coated urea granules in Urea Gold facilitate a controlled and gradual release of nitrogen. This extended nutrient availability improves NUE, leading to reduced fertiliser application frequency and better crop health.
- Sustainable Agriculture: Urea Gold’s dual focus on addressing soil deficiencies and improving NUE contributes to more sustainable agricultural practices. It reduces excessive fertiliser use and associated environmental impact.
- Economic Benefit: The improved NUE offered by Urea Gold has the potential to reduce input costs for farmers, as they can achieve similar or better yields with lower fertiliser quantities.
- Potential Yield Boost: The sustained nitrogen release mechanism of Urea Gold can potentially lead to increased crop yields due to longer periods of vibrant foliage and enhanced nutrient availability.
Potential Hurdles
- Pricing Uncertainty: Lack of clear pricing details for Urea Gold could impact its adoption among farmers.
- Subsidy Disparity: The current additional rates offered by the government may not sufficiently incentivize companies to promote fortified fertilisers like Urea Gold.
- Limited Farmer Incentives: Farmers might perceive fortified fertilisers as more expensive compared to traditional options, leading to reluctance in adoption.
- Distribution Challenges: Ensuring uniform distribution and application of fortified fertilisers presents logistical complexities.
- Regulatory Influence: Regulatory aspects, such as pricing controls and subsidy structures, can affect the feasibility of fortified fertiliser products.
- Awareness Gap: Limited farmer awareness regarding the benefits and correct usage of fortified fertilisers might hinder their willingness to switch.
- Production Scalability: Scaling up fortified fertiliser production to meet demand and ensure availability poses a significant hurdle.
Way Forward
- Price Rationalization: The government could consider revisiting subsidy rates to make fortified fertilisers economically attractive for both companies and farmers. This would encourage the adoption of innovative products like Urea Gold.
- Subsidy Structure: Tailoring subsidies to reflect the enhanced benefits of fortified fertilisers, such as improved NUE and reduced environmental impact, could encourage their adoption.
- Education Campaigns: Launching awareness campaigns about the advantages of fortified fertilisers, like Urea Gold, can educate farmers and dispel misconceptions about their higher costs.
- Field Demonstrations: Organizing on-field demonstrations of the benefits of fortified fertilisers could provide tangible evidence to farmers, boosting their confidence in making the switch.
- Long-Term Perspective: Encouraging farmers to consider the long-term economic and environmental benefits of fortified fertilisers could shift their focus from initial cost concerns.
- Market Diversification: Exploring partnerships with private sector players and agribusinesses to promote fortified fertilisers could enhance market penetration.
- Gradual Transition: Gradually phasing in fortified fertilisers while continuing to offer traditional options at subsidized rates can ease farmers into adopting the new products.
Conclusion
- Urea Gold’s introduction marks a significant step towards addressing the complexities of modern agriculture. To fully harness the power of fortified fertilisers, a multi-faceted approach is needed – blending cutting-edge technology with conducive policies – to steer Indian agriculture towards sustainable growth and heightened productivity.
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Urea Gold: Making Urea more efficient
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Urea Gold
Mains level: Read the attached story
Central Idea
- The recent launch of “Urea Gold,” a fortified fertiliser by Rashtriya Chemicals and Fertilizers Ltd (RCF), has sparked interest as it combines urea with sulphur to enhance nitrogen use efficiency (NUE).
- It seeks to tackle challenges of escalating urea consumption and declining agricultural efficiency.
What is Urea Gold?
- Composition: “Urea Gold” blends urea with sulphur to create a fortified fertiliser aimed at improving NUE and crop performance.
- NUE Enhancement: The fortified blend ensures gradual nitrogen release, sustaining plant health and potentially reducing fertiliser application frequency.
Challenges of Urea Consumption and NUE Decline
- Urea Consumption Surge: Urea consumption has risen from 26.7 million tonnes to 35.7 million tonnes between 2009-10 and 2022-23, making it India’s predominant fertiliser choice.
- Import Dependency: Domestic urea production relies heavily on imported natural gas. India’s annual consumption trails only China’s, where coal-based production prevails.
- Declining NUE: Only around 35% of nitrogen applied through urea benefits crops, raising concerns about resource wastage and increased fertiliser application.
Fortified Fertiliser Solution
- Coating Strategy: Fortified fertilisers entail coating primary nutrients (N, P, K) with secondary nutrients (S, calcium, magnesium) and micronutrients (zinc, boron, manganese, etc.).
- Enhanced Benefits: Coated fertilisers act as “carrier products” for secondary and micronutrients, thereby increasing their N and P use efficiency and ensuring controlled nutrient release.
- Innovation by Yara International: The “Procote” technology facilitates micronutrient coating, demonstrating improved fertiliser efficacy.
- Efficacy Confirmation: The trials substantiated amplified paddy and wheat yields through micronutrient-coated fertilisers, potentially mitigating NUE concerns.
Pricing and Distribution Challenges
- Pricing Complexities: Existing subsidies for coated fertilisers like zincated urea and boronated DAP may not incentivise companies to promote fortified products.
- Farmer Adoption Hurdles: Discrepancies in pricing between fortified and non-fortified fertilisers have deterred farmers from embracing coated options.
- Optimal Implementation: Advocates suggest factory-level coating to ensure uniform nutrient distribution and user convenience. Freeing maximum retail prices (MRPs) for coated fertilisers could bolster adoption.
- Striking Pricing Balance: Since traditional fertilisers receive substantial subsidies, fortified product premiums must remain reasonable to encourage affordability.
Conclusion
- Amidst the challenges of dwindling NUE and escalating urea consumption, the introduction of “Urea Gold” and fortified fertilisers holds promise for enhancing agricultural efficiency.
- The journey to successful implementation necessitates addressing pricing discrepancies and distribution intricacies.
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PM-PRANAM Scheme gets cabinet nod
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-PRANAM Scheme
Mains level: Not Much
Central Idea
- The union cabinet has given its approval to PM-PRANAM scheme, which aims to promote the usage of alternative fertilizers and balanced utilization of chemical fertilizers.
- This scheme, announced in the budget for 2023-24, reflects the government’s commitment to sustainable agricultural practices and the conservation of natural resources.
What is PM-PRANAM Scheme?
- PM-PRANAM stands for Prime Minister Promotion of Alternate Nutrients for Agriculture Management Yojana.
- The scheme was proposed during the National Conference on Agriculture for Rabi Campaign in September 2022.
- Its objective is to reduce the subsidy burden on chemical fertilizers by promoting the use of alternative fertilizers.
Notable features of the scheme
- Incentivizing States and UTs: The scheme incentivizes states and Union Territories to promote the usage of alternative fertilizers and achieve a balanced use of chemical fertilizers. States that demonstrate significant savings in funds due to reduced chemical fertilizer usage receive grants as incentives.
- Subsidy Savings Allocation: Around 50% of the subsidy savings resulting from reduced chemical fertilizer consumption will be allocated as a grant to the state that exhibits the highest savings. This encourages states to actively participate in the adoption of alternative fertilizers.
- Creation of Assets: A significant portion (70%) of the granted funds will be utilized for creating assets associated with the technological integration of alternate fertilizers. This includes establishing production units at the village, block, and district levels, facilitating local production and availability of alternative fertilizers.
- Recognition and Incentives for Farmers: The remaining 30% of the granted funds will be utilized to incentivize and recognize farmers and other village entities for their contributions to reducing fertilizer usage. This recognizes their efforts in adopting sustainable agricultural practices.
- Environmentally Friendly Farming Practices: The scheme aims to promote environmentally friendly farming practices by encouraging the adoption of alternative fertilizers. This reduces the dependency on chemical fertilizers, which in turn contributes to environmental conservation and sustainability.
- Long-term Soil Health and Agricultural Ecosystems: By promoting a balanced use of fertilizers, the scheme ensures the long-term health and fertility of agricultural ecosystems. It emphasizes sustainable agricultural practices that preserve soil health and protect natural resources.
- Technological Integration: The scheme supports the integration of technology into agriculture for the production and utilization of alternative fertilizers. This includes the establishment of production units at the grassroots level, encouraging local production and accessibility of alternative fertilizers.
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Achieving Self-Reliance in Fertilizers: A Stepping Stone Towards Atmanirbhar Bharat
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat initiatives.
Mains level: Self-reliance in Fertilizer sector
Central Idea
- In the wake of global crises, Prime Minister Narendra Modi’s resolute statement, “When the world is in crisis, we must pledge, a pledge that is greater than the crisis itself. We must endeavor to make the 21st century, India’s century and the path to achieving this is self-reliance,” seen as government’s relentless pursuit of a self-reliant India through the Atmanirbhar Bharat initiatives.
Improvements and achievements in the fertilizer sector in the last the four years
- Increased opening stocks: There has been a significant improvement in the opening stocks of key fertilizers such as DAP (Di-Ammonium Phosphate), MOP (Muriate of Potash), and other NPK (nitrogen, phosphorus, and potassium) fertilizers. For instance, the opening stocks of DAP, MOP, and other NPK fertilizers during Kharif 2023 have seen a substantial increase compared to Kharif 2022.
- Self-reliance in fertilizer production: The government’s efforts towards achieving self-reliance in the fertilizer sector have yielded positive results. Through measures such as long-term agreements, joint ventures, and diversification of suppliers, India has reduced its dependence on imports and strengthened its domestic fertilizer production capabilities.
- Enhanced fertilizer supply chain: The Department of Fertilizers has positioned India as a key player in the global fertilizer supply chain. Through strategic partnerships, long-term agreements, and joint ventures with various countries, India has secured a consistent supply of fertilizers.
- Resource partnerships: The government partnerships include countries such as Jordan, Saudi Arabia, Oman, Canada, Russia, Morocco, Israel, Senegal, Tunisia, and South Africa. Such collaborations have provided India with access to critical raw materials like rock phosphate and phosphoric acid, strengthening the country’s resource security.
- Product portfolio diversification: The expansion of NPK complexes, promotion of alternative fertilizers, and the introduction of innovative formulations have provided farmers with more choices to meet their specific crop and soil requirements.
- Fertilizer industry growth and employment opportunities: The government’s initiatives and investments in the fertilizer sector have contributed to the growth of the industry. The establishment of joint ventures, expansion of domestic operations, and technological advancements have created employment opportunities and fostered economic development in the sector.
- Commitment to food security: The government’s efforts towards achieving self-reliance in fertilizers align with its commitment to ensuring food security for the citizens of India. By strengthening the fertilizer supply chain, diversifying the product portfolio, and enhancing domestic production capabilities, the government is taking proactive steps to meet the fertilization needs of the agricultural sector.
Steps for Securing Fertilizer Supplies
- Long-term agreements: The government has encouraged domestic industries and public sector undertakings to sign long-term agreements for the import of raw materials and intermediates such as ammonia, phosphoric acid, and sulfur.
- Joint ventures: The government has promoted the establishment of joint ventures with resource-rich nations to secure fertilizer supplies. Joint venture plants have been set up in countries like Jordan, Saudi Arabia, Oman, Canada, Russia, Morocco, Israel, Senegal, Tunisia, and South Africa.
- Strategic partnerships: By collaborating with resource-rich nations, the government has established a reliable channel for procuring raw materials. These partnerships have allowed India to secure a supply of 157 LMT of various fertilizers for three years and 32 LMT for four years.
- Diversification of suppliers: By expanding the list of countries from which fertilizers are imported, India reduces its dependence on any single nation. This diversification enhances the stability and security of the fertilizer supply chain.
- Foresightedness in crisis: Despite facing challenges such as scarcity of raw materials, including gas, oil, rock phosphate, and potash, the government managed to forge long-term agreements and joint ventures to ensure uninterrupted access to fertilizers.
- Strengthening domestic operations: The government has supported the domestic industry in identifying opportunities across the value chain. By strengthening domestic operations, India reduces its reliance on imports and becomes more self-sufficient in fertilizer production.
- Promotion of alternate fertilizers and natural farming: In addition to securing traditional fertilizers, the government has also focused on promoting alternate fertilizers and natural farming practices. This not only reduces dependence on imported fertilizers but also encourages sustainable and eco-friendly farming methods.
Encouraging Joint Ventures: A key Strategy by The Government
- Raw material security: Joint venture plants established through these partnerships have buy-back agreements and assured off-take agreements. This ensures a consistent supply of critical raw materials like rock phosphate and phosphoric acid, which are essential for fertilizer production.
- Import substitution: By setting up manufacturing facilities in partner countries, Indian industries can produce raw materials locally rather than relying on imports. This not only reduces import costs but also strengthens the domestic manufacturing base and enhances self-reliance.
- Technology transfer and knowledge sharing: Joint ventures provide opportunities for technology transfer and knowledge sharing between Indian industries and their foreign partners. This enables the adoption of advanced manufacturing processes, improved production techniques, and access to specialized expertise.
- Market access: Joint ventures often come with market access agreements, allowing Indian industries to access new markets and expand their global reach. This helps in diversifying the customer base and increasing the export potential of Indian-made fertilizers.
- Strengthening diplomatic ties: Joint ventures foster strong economic ties between India and partner countries. By engaging in collaborative projects, both nations benefit from increased trade, investment, and mutual cooperation.
- Research and innovation: Joint ventures provide opportunities for joint research and innovation in fertilizer production. This collaboration can lead to the development of new and improved fertilizers, production processes, and technologies.
Diversifying the Product Portfolio
- Expansion of NPK complexes: The government has focused on diversifying the product portfolio in the fertilizer sector, particularly by expanding the production of NPK (nitrogen, phosphorus, and potassium) complexes. NPK complexes offer a wider range of fertilizers with different nutrient compositions, catering to the specific needs of various crops and soil conditions.
- Introduction of alternative fertilizers: In line with the goal of diversification, the government has promoted the use of alternative fertilizers. These include organic fertilizers, bio-fertilizers, and bio-stimulants, which are derived from natural sources and have minimal environmental impact.
- Innovative fertilizer formulations: To meet the diverse needs of different crops and agricultural practices, the government has encouraged the development of innovative fertilizer formulations. These formulations incorporate micronutrients, secondary nutrients, and growth-promoting substances, tailored to specific crop requirements.
- Value-added fertilizers: The fertilizers are enriched with additional beneficial components such as organic matter, beneficial microbes, or growth regulators. Value-added fertilizers provide added advantages, such as improved soil fertility, enhanced nutrient uptake, and increased crop resilience.
- Customized fertilizers for different crops: The government has encouraged the development of customized fertilizers tailored to the specific nutrient requirements of different crops. This approach acknowledges that different crops have varying nutrient demands at different growth stages.
- Fertilizer innovation and research: The government has supported research and innovation in the fertilizer sector to drive product diversification. This includes investments in agricultural research institutions, collaboration with industry experts, and the establishment of research and development centers.
Conclusion
- The four years of Modi 2.0 have been instrumental in driving India towards self-reliance, particularly in the crucial fertilizers sector. By diversifying the product portfolio and ensuring ample fertilizer supplies, India has taken significant steps towards achieving food security and fulfilling PM Modi’s vision of an Atmanirbhar Bharat
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Also read:
| Why India needs a fresh Fertilizer Policy? |
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
Cabinet nod for ₹1.08 lakh crore kharif Fertilizer Subsidy
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizer Subsidy
Mains level: India's fertilizer subsidy burden
Central Idea
- The Union Cabinet has approved a fertilizer subsidy of ₹1.08 lakh crore for the ongoing kharif or monsoon season.
- ₹38,000 crore will be allocated for Nitrogen, phosphatic and potassic (NPK) fertilizers, while ₹70,000 crore will go towards the urea subsidy.
Fertilizer consumption and subsidies
- The country’s total consumption of urea is approximately 325 to 350 lakh metric tonnes (LMT).
- Other fertilizers sold in the country include 100 to 125 LMT of DAP, 100 to 125 LMT of NPK, and 50 to 60 LMT of Muriate of Potash (MoP).
- The fertilizer subsidy per hectare of land is about ₹8,909, and each farmer receives a subsidy of ₹21,223.
- DAP: The actual price of a bag of DAP is ₹4,000, but farmers receive it at a subsidized rate of ₹1,350 per bag, with a subsidy of ₹2,461 per bag.
- NPK: This subsidy is ₹1,639 per bag, and the MoP subsidy amounts to ₹734 per bag.
- Urea: The Centre spends ₹2,196 per bag of urea.
Fertilizer Subsidy in India
- Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
- Fertiliser subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
- The rate of subsidy is based on the average price of imported fertilizer in the last six months.
How is the subsidy paid and who gets it?
- The subsidy goes to fertiliser companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates.
- From March 2018, a new so-called direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
- With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
How does this system work?
- A popular example of how this system works is that of the neem-coated urea fertiliser.
- Its MRP is fixed by the government at Rs. 5922.22 per tonne.
- The average cost of domestic production is at Rs 17,000 per tonne. The difference is footed by the centre in the form of subsidy.
What about non-urea fertilizers?
- The non-urea fertiliser is decontrolled or fixed by the companies.
- The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
- The government pays a flat per tonne subsidy to maintain the nutrition content of the soil, and ensure other fertilizers are economical to use.
Issues with such subsidies
- Low NUE: Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea.
- Groundwater pollution: Consequently, excess usage contaminates groundwater.
- Overuse beyond prescription: The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides. The WHO has prescribed limits been breached by Punjab, Haryana and Rajasthan.
- Health hazards: For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
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Overuse of Urea in India and its Implications
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Urea, NBS, Neem Coated Urea
Mains level: Fertilizer overuse and related issues
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
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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Why India needs a fresh Fertilizer Policy?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India's fertilizer subsidy burden
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:
- Assessment of state-wise requirements every month;
- 100% neem coating of urea, which increases nutrient efficiency;
- Monitoring of crop yield and soil health; and
- 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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Why are nitrogenous fertilizers still a first choice of farmers?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basics of Fertilizers, applications, effects etc.
Mains level: Reasons and effects of Indiscriminate use of Urea and DAP fertilizers
Context
- Two ambitious schemes of the Central government such as Soil Health Card and mandatory neem-coating of urea were supposed to promote balanced use of fertilisers. However, far from weaning farmers from urea, annual consumption of this nitrogenous fertiliser has only risen from 30 to 35 million tonnes (mt) in the last five years.
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Rise in the sales of nitrogenous fertilizers
- Rise in sales of not only urea but also DAP: This year, not only have urea sales gone up by 3.7 per cent during April-October over the same period of 2021, it has grown even more, at 16.9 per cent, for di-ammonium phosphate (DAP).
- Sales are not in correct proportion: It has come even as sales of all other fertilisers including complexes containing nitrogen (N), phosphorus (P), K (potash) and sulphur (S) in different proportions have fallen.
- Urea and DAP are the dominant choice of Indian farmers: In other words, instead of balanced use of plant nutrients based on soil testing and specific crop requirement, Indian farmers are effectively applying just urea and DAP both high-analysis fertilisers containing 46 per cent N and P respectively.
What are the reasons for increasing use of Urea and DAP Fertilizers?
- The non-urea fertiliser is decontrolled or fixed by the companies: The government has fixed the maximum retail price (MRP) of urea at Rs 5,628 per tonne. The MRPs of other fertilisers are technically decontrolled, but companies have been “told” not to charge more than Rs 27,000/tonne for DAP.
- Informally fixed prices are higher: The informally-fixed MRPs are higher at Rs 29,000-31,000 and Rs 34,000 per tonne for NPKS complexes and muriate of potash (MOP) respectively, but farmers have little incentive to buy at these prices.
- DAP is cheaper to apply: Farmers are reluctant to apply complexes such as 10:26:26:0, 12:32:16:0 and 20:20:0:13 when DAP is cheaper and has 46 per cent P as well as 18 per cent N.
- Price is the primary concern for over micronutrients: The fact that DAP does not contain K, S or other macro and micro nutrients wouldn’t matter to a majority of farmers. For them, choice of fertilisers is primarily a function of prices.
- Subsidies on individual ferlizers are to be blamed: Underpricing of urea (a historical phenomenon) and DAP (recent) is a product of subsidy-induced market distortions, for which the blame lies squarely with the Government.
Ideal ratio for N:P:K and effects of excessive use
- Ideal ratio v/s current NPK ratio: The effects of these the current NPK ratio is about 13:5:1, as against the ideal 4:2:1 would ultimately show up in crop yields.
- Plants will respond poorly: Plants, like humans, will respond poorly to fertilisers if only one or two nutrients are given in excess.
- Disturbs soil health: Excessive use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health
What the government can do?
- Changing the subsidy policies: The Government should replace subsidies on individual fertiliser products with a flat per-hectare cash transfer, maybe twice a year.
- E- wallet account for money transfer only to purchase fertilizers: Every farmer can have an e-wallet account into which this money can be credited before the kharif and rabi planting seasons. The e-wallet may be used only for the purchase of fertilisers.
- Maintaining stock of basic fertilizers: The government can maintain a stock of basic fertilisers, including urea and DAP, to ensure no untoward price rise even in a decontrol scenario.
Have you heard? “PM PRANAM” scheme
- In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
- The proposed scheme intends to reduce the subsidy burden on chemical fertilisers.
- This burden if uneased, is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
- The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.
Conclusion
- The compulsions of electoral politics have clearly trumped concerns over soil nutrient imbalances. Price distortions in fertilisers will not help farming in the long run. Govt can offer acreage-based cash transfers.
Mains Question
Q. Despite government efforts to reduce nitrogenous fertilizers, the annual consumption of these fertilizers is increasing. Discuss the reasons and what government can do more?
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Centre restricts use of common weedicide Glyphosate
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Glyphosate
Mains level: Not Much
The Union Ministry of Agriculture and Farmers Welfare has restricted the use of glyphosate, a widely used herbicide, citing health hazards for humans and animals.
What is Glyphosate?
- Glyphosate is an herbicide. It is applied to the leaves of plants to kill both broadleaf plants and grasses.
- The sodium salt form of glyphosate is used to regulate plant growth and ripen specific crops.
- Glyphosate is one of the most widely used herbicide.
- In India, glyphosate has been approved for use only in tea plantations and non-plantation areas accompanying the tea crop.
- Use of the substance anywhere else is illegal.
How does glyphosate work?
- Glyphosate is a non-selective herbicide, meaning it will kill most plants.
- It prevents the plants from making certain proteins that are needed for plant growth.
- Glyphosate stops a specific enzyme pathway, the shikimic acid
- The shikimic acid pathway is necessary for plants and some microorganisms.
What is the recent ban?
- Only authorized Pest Control Operators are allowed to use it.
- Earlier, state governments of Maharashtra, Telangana, Punjab and Andhra Pradesh have tried similar steps but failed.
- The ban notification was based on a 2019 report by the Government of Kerala on prohibiting the distribution, sale and use of glyphosate and its derivatives.
Is it banned elsewhere?
- Some 35 countries have banned or restricted the use of glyphosate.
- These include Sri Lanka, Netherlands, France, Colombia, Canada, Israel and Argentina.
Hazards of Glyphosate
- Health impacts of glyphosate range from cancer, and reproductive and developmental toxicity to neurotoxicity and immune toxicity.
- Symptoms include irritation, swelling, burning of the skin, oral and nasal discomfort, unpleasant taste and blurred vision.
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PM inaugurates ‘One Nation, One Fertilizer’ Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: One Nation One Fertiliser (ONOF)
Mains level: India's fertilizer subsidy
Prime Minister has inaugurated 600 Kisan Samridhi Kendras and ‘One Nation, One Fertilizer’ scheme and said that these steps were being taken to modernise agriculture.
One Nation One Fertilizer (ONOF)
- The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc. respectively for all Fertilizer Companies, State Trading Entities (STEs) and Fertilizer Marketing Entities (FMEs).
- Also a logo indicating Fertilizer subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna will be used on said Fertilizer bags.
- Under the scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
- On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
What is the government’s argument for introducing this scheme?
The government’s logic for introducing a single ‘Bharat’ brand for all subsidised Fertilizers being marketed by companies is as follows:
(1) Subsidies normalization
- The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
- The MRPs of non-urea Fertilizers are, on paper, decontrolled.
- But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
- Simply put, there are some 26 Fertilizers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;
(2) Harmonizing markets
- Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell.
- This is done through the Fertilizer (Movement) Control Order, 1973.
- Under this, the department of Fertilizers draws an agreed monthly supply plan on all subsidised Fertilizers in consultation with manufacturers and importers.
- This supply plan is issued before the 25th of each month for the following month, with the department also regularly monitoring movement to ensure Fertilizer availability as per requirement, including remote areas.
(3) Farmers welfare
- The government is spending vast sums of money on Fertilizer subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23).
- By deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.
What can be the drawbacks of the scheme?
- It may disincentivize Fertilizer companies from undertaking marketing and brand promotion activities.
- They will now be reduced to contract manufacturers and importers for the government. Any company’s strength ultimately is its brands and farmer trust built over decades.
- Currently, in case of any bag or batch of Fertilizers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.
- Politically, the scheme might well boomerang rather than benefit the ruling party.
Challenges in the fertilizer sector
- Distortion in use due to price difference: In 2019-20, fertilizer use per hectare of cultivated area varied from 70 kg of NPK in Rajasthan to 250 kg in Telangana
- Shift in the composition of fertilizer used:The high price differences among fertilizers (Nitrogen is much cheaper than Potassium and Phosphorus) have disturbed the relative prices of various fertilizers and resulted in a big shift in the composition of fertilizers used in the country in favor of urea and thus Nitrogen.
- Increasing fertilizer subsidy: Fertilizer subsidy has doubled in a short period of three years. For 2021-22, the Union Budget has estimated fertilizer subsidy at ₹79,530 crores (from ₹66,468 crores in 2017-18).
- Burden on exchequer: Taxpayers bear 78% of the cost of urea and farmers pay only 22%. This is expected to increase and is not sustainable.
- Sensitive to Global impacts: The subsidy is likely to reach a much higher level due to the recent upsurge in the prices of energy,the international prices of urea and other fertilizers, and India’s dependence on imports.
- Import dependence: The total demand for urea in the country is about 34-35 million tonnes whereas the domestic production is about 25 million tonnes.
Other issues
- Lesser expansion of Irrigation facilities and consequent low fertilizer consumption leads to low demand and therefore, restricts the growth of the industry.
- Use of Obsolete Technology: Most of the fertilizer industry operates under PSUs that are using decade-old technology and thus making huge losses and also the competitive edge.
Way forward
- India should pay attention to improving fertilizer efficiency through need-based use rather than broadcasting fertilizer in the field.
- The use of bio-fertilizers is necessary to maintain soil health as more and more use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
Indiscriminate use of chemical fertilizers
Context
- Given the genetic modification of the human body and the loss of biodiversity, reducing pesticide use should have long been a national priority.
Background
- Continuous and indiscriminate use of chemical fertilizers has led to several harmful effects on the soil environment, ground and surface water reducing the productivity of soil by affecting soil health in terms of physical, chemical, and biological properties.
- The excess/indiscriminate use of pesticides has led to the harmful compounds into food chain, death of natural enemies and development of resistance to pesticides.
What is Fertilizer?
- Fertilizers are substances that provide one or more of the chemicals required for plant growth. Fertilizers can be both organic and inorganic.
- Mixed fertilizers contain more than one of the three major nutrients nitrogen, phosphorus, and potassium.
What are the consequences of misuse of fertilizers?
- Soil Health: Excessive use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health.
- Water pollution: Water pollutionfrom fertilizer runoff, which has a sphere of impact that extends far beyond the farmer and the fields. They get washed away by water easily and cause pollution.
- Release Greenhouse gases: Leads to the release of harmful greenhouse gases into the atmosphere and the eutrophication of our waterways.
- Impact on Health: Depending on the amount of fertilizer consumed, it may cause disturbances of the kidneys, lungs and liver and even cause cancer.
What is the status of Fertilizer usage in India?
- The main products manufactured by the fertilizer industry in India are phosphate based fertilizers nitrogenous fertilizers, and complex fertilizers.
- The ratio of N:P:K (Nitrogen :Phosphorus: Potassium) which is ideally should be 4:2:1,stands at 8.2:3.2:1,overuse of urea has lead to many ecological problems.
- States like Andhra Pradesh, Tamil Nadu, Punjab and Haryana use chemical fertilizers more than 200kgs/hectare whereas North eastern states use less than 10kg/hectare.
- A lot of urea meant for agricultural usage is diverted to industrial use in via black market.65%of farmers in Uttar Pradesh purchase urea from black market.
What are the reasons behind the misuse of Fertilizers in India?
- Lack of knowledge: Lack of knowledge leading to indiscriminate usage of fertilizers and pesticides in a hope of better yields.
- Profit oriented Business model: In India, shopkeepers sell farm chemical inputs from multiple companies, and their business model like any other business rewards shopkeepers with higher margins for increasing sales. Shopkeepers also nudge farmers to buy what they may not necessarily need.
- Not affordable Technology: Individual farmers cannot afford good quality precision spraying equipment and that leads to wrong application and excess usage.
- Becoming a more Contracted service: 10 per cent of farm chemical input sales of each seller could be in the form of services (spray on farms). Each following year, the seller would mandatorily increase the services by an additional 10 per cent, till the business model had become one of the services contracted, and not of farm chemical inputs sold.
- Lack of transparency and accountability: The lack of real-time quality data inhibits transparency and accountability, making the reduction of chemical use difficult.
- Administrative loophole: A basic principle of law states that regulators should be independent. Alarmingly, in the case of agricultural chemical inputs, the same authorities and departments that advocate their use also regulate the trade.
What can be done to stop misuse of Fertilizers?
- Adopting Service oriented business model: The business model of the farm chemical input industry must transform to become a service industry. For instance A Syngenta franchise sells its brand of farm chemicals. It also served for field spraying, ensuring low input application
- Precision spraying equipment: Assistance in getting good quality precision spraying equipment as individual farmers can’t afford.
- Better advisory and awareness: Infrastructure should be developed for better targeted farm advisory and grievance redressal. In addition awareness and knowledge centers should be developed.
- Regulated sale: Shopkeepers should report each sale of farm chemicals to the government in real time
- Need to shift our focus to Bio-fertilizers: Bio-fertilizers are cheap, renewable, and eco-friendly, with great potential to supplement plant nutrients.
- Improve fertilizer efficiency: India should pay attention to improving fertilizer efficiency through need-based use rather than broadcasting fertilizer in the field. The recently developed Nano urea by IFFCO shows promising results in reducing the usage of urea.
- Example of Mandatory QR code: A mandatory QR code on each farm chemical package for instance. Bayer, the world’s largest seed and pesticide company has started to print a QR code on every pesticide package which will allow each farm input package used on the farm to be traceable to the factory floor.
Conclusion
- During the past several decades, agricultural development mainly focused on on short term gains in productivity and profitability, which has Caused severe damage to soil fertility, health and environment ears.
- It is the need of the hour to understand the problems and find alternatives that can sustain the environment and feed the growing population.
Mains Question
Q.While technology induction is required for feeding the surging population, the excessive use of chemical fertilizers caused environmental imbalance and causing problems to all human being on the earth .In this context Discuss the alternatives to chemical
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What is the PM PRANAM Scheme?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM PRANAM Scheme
Mains level: India's fertilizer subsidy
In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
What is the PM PRANAM scheme?
- The proposed scheme intends to reduce the subsidy burden on chemical fertilisers.
- This burden if uneased, is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
- The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.
Subsidies under the PRANAM
- Further, 50% subsidy savings will be passed on as a grant to the state that saves the money and that 70% of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers.
- It would create alternate fertiliser production units at village, block and district levels.
- The remaining 30% grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
- The government will compare a state’s increase or reduction in urea in a year, to its average consumption of urea during the last three years.
How much fertiliser does India require?
- The kharif season (June-October) is critical for India’s food security, accounting for nearly half the year’s production of foodgrains, one-third of pulses and approximately two-thirds of oilseeds.
- A sizable amount of fertiliser is required for this season.
- The Department of Agriculture and Farmers Welfare assesses the requirement of fertilisers each year before the start of the cropping season, and informs the Ministry of Chemical and fertilisers to ensure the supply.
- The amount of fertiliser required varies each month according to demand, which is based on the time of crop sowing, which also varies from region to region.
- For example, the demand for urea peaks during June-August period, but is relatively low in March and April, and the government uses these two months to prepare for an adequate amount of fertiliser for the kharif season.
Why is the scheme being introduced?
- Due to increased demand for fertiliser in the country over the past 5 years, the overall expenditure by the government on subsidy has also increased.
- The final figure of fertiliser subsidy touched Rs 1.62 lakh crore in 2021-22.
- The total requirement of four fertilisers — Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium) — increased by 21% between 2017-2018 and 2021-2022, from 528.86 lakh metric tonnes (LMT) to 640.27 LMT.
- PM PRANAM, which seeks to reduce the use of chemical fertiliser, will likely reduce the burden on the exchequer.
- The proposed scheme is also in line with the government’s focus on promoting the balanced use of fertilisers or alternative fertilisers in the last few years.
Try this PYQ:
Q.What are the advantages of fertigation in agriculture? (CSP 2020)
1.Controlling the alkalinity of irrigation water is possible.
2.Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3.Increased availability of nutrients to plants is possible.
4.Reduction in the leaching of chemical nutrients is possible.Select the correct answer using the code given below:
(a) 1, 2 and 3 only(b) 1,2 and 4 only
(c) 1,3 and 4 only
(d) 2, 3 and 4 only
Post your answers here.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
Scientists remain sceptical about how Liquid Nano Urea benefits crops
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Liquid Nano Urea (LNU)
Mains level: Not Much
Liquid Nano Urea, a fertilizer patented and sold by the Indian Farmers Fertiliser Cooperative Ltd. (IFFCO), has been approved by the government for commercial use because of its potential to substantially reduce the import bill, but several experts have questioned the science underlying its efficacy.
What is Liquid Nano Urea (LNU)?
- Urea is chemical nitrogen fertiliser, white in colour, which artificially provides nitrogen, a major nutrient required by plants.
- LNU is essentially urea in the form of a nanoparticle.
- It is sprayed directly on the leaves and gets absorbed by the plant.
- Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are absorbed by the stomata, pores found on the epidermis of leaves.
- According to IFFCO, liquid nano urea contains 4 per cent total nitrogen (w/v) evenly dispersed in water.
- The size of a nano nitrogen particle varies from 20-50 nm. (A nanometre is equal to a billionth of a metre.)
Using LNU
- The liquid nano urea produced by IFFCO Limited comes in a half-litre bottle priced at Rs 240, and carries no burden of subsidy currently.
- By contrast, a farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea.
- According to IFFCO, a bottle of the nano urea can effectively replace at least one bag of urea.
How efficient is LNU?
- While conventional urea has an efficiency of about 25 per cent, the efficiency of liquid nano urea can be as high as 85-90 per cent.
- Conventional urea fails to have the desired impact on crops as it is often applied incorrectly, and the nitrogen in it is vaporized or lost as a gas.
- A lot of nitrogen is also washed away during irrigation.
- Liquid nano urea has a shelf life of a year, and farmers need not be worried about “caking” when it comes in contact with moisture.
Significance of LNU
- This patented product is expected to not only substitute imported urea, but to also produce better results in farms.
- Apart from reducing the country’s subsidy bill, it is aimed at reducing the unbalanced and indiscriminate use of conventional urea.
- It will help increase crop productivity, and reduce soil, water, and air pollution.
Why in news now?
- Plants need nitrogen to make protein and they source almost all of it from soil bacteria which live in a plant’s roots and have the ability to break down atmospheric nitrogen, or that from chemicals such as urea into a form usable by plants.
- Chemically packaged urea is 46% nitrogen, which means a 45-kg sack contains about 20 kg of nitrogen.
- Contrastingly, nano urea sold in 500-ml bottles has only 4% nitrogen (or around 20 g).
- How this can compensate for the kilograms of nitrogen normally required puzzles scientists.
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One Nation One Fertiliser (ONOF) Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: One Nation One Fertiliser (ONOF)
Mains level: India's fertilizer subsidy
The Ministry of Chemicals and Fertilisers will implement One Nation One Fertiliser (ONOF) by introducing a Single Brand for Fertilisers and Logo under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).
One Nation One Fertiliser (ONOF)
- The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc. respectively for all Fertiliser Companies, State Trading Entities (STEs) and Fertiliser Marketing Entities (FMEs).
- Also a logo indicating Fertiliser subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna will be used on said fertiliser bags.
- Under the scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
- On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
What is the government’s argument for introducing this scheme?
The government’s logic for introducing a single ‘Bharat’ brand for all subsidised fertilisers being marketed by companies is as follows:
(1) Subsidies normalization
- The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
- The MRPs of non-urea fertilisers are, on paper, decontrolled.
- But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
- Simply put, there are some 26 fertilisers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;
(2) Harmonizing markets
- Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell.
- This is done through the Fertiliser (Movement) Control Order, 1973.
- Under this, the department of fertilisers draws an agreed monthly supply plan on all subsidised fertilisers in consultation with manufacturers and importers.
- This supply plan is issued before the 25th of each month for the following month, with the department also regularly monitoring movement to ensure fertiliser availability as per requirement, including remote areas.
(3) Farmers welfare
- The government is spending vast sums of money on fertiliser subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23).
- By deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.
What can be the drawbacks of the scheme?
- It may disincentivise fertiliser companies from undertaking marketing and brand promotion activities.
- They will now be reduced to contract manufacturers and importers for the government. Any company’s strength ultimately is its brands and farmer trust built over decades.
- Currently, in case of any bag or batch of fertilisers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.
- Politically, the scheme might well boomerang rather than benefit the ruling party.
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Punjab bans use of 10 insecticides
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Maximum Residue Limit (MRL)
Mains level: Not Much
Amid reports that several samples of basmati rice contained the residue of certain pesticides above the maximum residue level (MRL), the Punjab government has decided to ban the use of 10 formulations.
Which are the chemicals banned?
- The State government believed that the sale, stock distribution, and use of Acephate, Buprofezin, Chloropyriphos, Methamidophos, Propiconazole, Thiamethoxam, Profenofos, Isoprothiolane, Carbendazim, and Tricyclazole was not in the interest of basmati rice growers.
- It is said that there is a risk of breaching the MRL fixed by the competent authority for basmati rice.
What is the Maximum Residue Limit (MRL)?
- MRL is the highest level of pesticide residue that is legally tolerated in or on food or feed when pesticides are applied correctly in accordance with Good Agricultural Practice promulgated by Food and Agriculture Organization (FAO).
- The MRL is usually determined by repeated (on the order of 10) field trials at an appropriate pre-harvest interval or withholding period has elapsed.
- For many pesticides, this is set at the Limit of determination (LOD) – since only major pesticides have been evaluated and understanding of acceptable daily intake (ADI) is incomplete.
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Fertlizer subsidy issue
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Di-ammonium fertilisers
Mains level: Paper 3- Reducing the cost of fertiliser imports
Context
The global prices of urea, DAP, MOP, phosphoric acid, ammonia and LNG have soared by two to two-and-a-half times in the last year
Resource richness of Indian agriculture
- No country has as much area under farming as India.
- Land under cultivation: At 169.3 million hectares (mh) in 2019, its land used for crop cultivation was higher than that of the US (160.4 mh), China (135.7 mh), Russia (123.4 mh) or Brazil (63.5 mh).
- Ample water: With its perennial Himalayan rivers and average annual rainfall of nearly 1,200 mm – against Russia’s 475 mm, China’s 650 mm and the US’s 750 mm – India has no dearth of land, water and sunshine to sustain vibrant agriculture.
- But there’s one resource in which the country is short and heavily import-dependent — mineral fertilisers.
India’s important dependence
- In 2021-22, India imported 10.16 million tonnes (mt) of urea, 5.86 mt of di-ammonium phosphate (DAP) and 2.91 mt of muriate of potash (MOP).
- Import value: In value terms, imports of all fertilisers touched an all-time high of $12.77 billion last fiscal.
- In 2021-22, India also produced 25.07 mt of urea, 4.22 mt of DAP, 8.33 mt of complex fertilisers (containing nitrogen-N, phosphorus-P, potassium-K and sulphur-S in different ratios) and 5.33 mt of single super phosphate (SSP).
- Import of raw material: The intermediates or raw materials for the manufacture of these fertilisers were substantially imported.
- Total value of fertiliser imports: The total value of fertiliser imports by India, inclusive of inputs used in domestic production, was a whopping $24.3 billion in 2021-22.
Two costs involved in import
- 1] Foreign exchange outgo for import: The first is foreign exchange outgo:
- Imports are mostly from the following countries:
- Urea: Imported from China, Oman, UAE and Egypt
- DAP: Imported from China, Saudi Arabia and Morocco.
- MOP: Imported from Belarus, Canada, Russia, Israel and Jordan.
- LNG: Imported from Qatar, US, UAE and Nigeria.
- Ammonia: Morocco, Jordan, Senegal and Tunisia (phosphoric acid); Saudi Arabia and Qatar.
- Rock phosphate: Jordan, Morocco, Egypt and Togo.
- 2] Fiscal cost: The second cost is fiscal.
- Fertilisers are not only imported but also sold at subsidised prices.
- The difference is paid as a subsidy by the government.
- That bill was Rs 1,53,658.11 crore or $20.6 billion in 2021-22 and projected at Rs 2,50,000 crore ($32 billion) this fiscal.
- Unsustainably high costs: Both costs are unsustainably high to bear for a mineral resource-poor country.
Suggestions
1] Reduce consumption of high-analysis fertilisers
- There is a need to cap or even reduce consumption of high-analysis fertilisers – particularly urea (46 per cent N content), DAP (18 per cent N and 46 per cent P) and MOP (60 per cent).
- Incorporate urease and inhibition compounds in urea: This can be done by incorporating urease and nitrification inhibition compounds in urea.
- These are basically chemicals that slow down the rate at which urea is hydrolysed and nitrified (which increases leaching).
- By reducing ammonia volatilisation and nitrate leaching, more nitrogen is made available to the crop, enabling farmers to harvest the same yields with a lesser number of urea bags.
- Liquid nano-urea: Together with products such as liquid “nano urea” –it is possible to achieve a 20 per cent or more drop in urea consumption from the present 34-35 mt levels.
- Liquid nano-urea with their ultra-small particle size is conducive to easier absorption by the plants than with bulk fertilisers, translating into higher nitrogen use efficiency.
2] Promote the sale of SSP and complex fertilisers
- A second route is by promoting sales of SSP (containing 16 per cent P and 11 per cent S) and complex fertilisers such as “20:20:0:13” and “10:26:26”.
- Restrict DAP use: DAP use should be restricted mainly to paddy and wheat; other crops don’t require fertilisers with 46 per cent P content.
- India can also import more rock phosphate to make SSP directly or it can be converted into “weak” phosphoric acid
- The latter, having only about 29 per cent P (compared to 52-54 per cent in normal “strong” merchant-grade phosphoric acid), is good enough for manufacturing “20:20:0:13”, “10:26:26” and other low-analysis complex fertilisers.
3] Incorporate MOP into complexes
- As regards MOP, roughly three-fourths of the imported material is now applied directly and only the balance is sold after incorporating into complexes.
- It should be the other way around.
- India, to re-emphasise, needs to wean its farmers away from all high-analysis fertilisers.
4] Use of NPKS complexes and indigenous sources
- The moment to use more NPKS complexes and SSP, is already happening.
- It requires a concerted push, alongside popularising high nutrient use-efficient water-soluble fertilisers (potassium nitrate, potassium sulphate, calcium nitrate, etc).
- Exploiting alternative indigenous sources needs to be considered (for example, potash derived from molasses-based distillery spent-wash and from seaweed extract).
5] Revise nutrient application recommendations
- Farmers need to know what is a suitable substitute for DAP and which NPK complex or organic manure can bring down their urea application from 2.5 to 1.5 bags per acre.
- It calls for agriculture departments and universities not just to revisit their existing crop-wise nutrient application recommendations, but disseminating this information to farmers on a campaign mode.
Conclusion
The costs associated with the use of fertilisers are unsustainably high to bear for a mineral resource-poor country such as India. We need to act on the measures to reduce our import dependence.
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Back2Basics: High-analysis fertilisers
- Fertilizers that have more than 30% total available nutrients are called high analysis fertilizers, whereas those with less than 30% total available nutrients are called low analysis fertilizers.
- A 15-15-15 is a high analysis fertilizer; a 5-10-10 is a low analysis fertilizer, and a 10-10-10 is right on the borderline.
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What is Liquid Nano Urea?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Liquid Nano Urea (LNU)
Mains level: India's fertilizer subsidy
During his visit to Gujarat, Prime Minister inaugurated the country’s first liquid nano urea plant at Kalol.
Liquid Nano Urea (LNU)
- Urea is chemical nitrogen fertiliser, white in colour, which artificially provides nitrogen, a major nutrient required by plants.
- LNU is essentially urea in the form of a nanoparticle.
- It is sprayed directly on the leaves and gets absorbed by the plant.
- Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are absorbed by the stomata, pores found on the epidermis of leaves.
- According to IFFCO, liquid nano urea contains 4 per cent total nitrogen (w/v) evenly dispersed in water.
- The size of a nano nitrogen particle varies from 20-50 nm. (A nanometre is equal to a billionth of a metre.)
Significance of LNU
- This patented product is expected to not only substitute imported urea, but to also produce better results in farms.
- Apart from reducing the country’s subsidy bill, it is aimed at reducing the unbalanced and indiscriminate use of conventional urea.
- It will help increase crop productivity, and reduce soil, water, and air pollution.
Using LNU
- The liquid nano urea produced by Indian Farmers Fertiliser Cooperative (IFFCO) Limited comes in a half-litre bottle priced at Rs 240, and carries no burden of subsidy currently.
- By contrast, a farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea.
- According to IFFCO, a bottle of the nano urea can effectively replace at least one bag of urea.
How efficient is LNU?
- While conventional urea has an efficiency of about 25 per cent, the efficiency of liquid nano urea can be as high as 85-90 per cent.
- Conventional urea fails to have the desired impact on crops as it is often applied incorrectly, and the nitrogen in it is vaporized or lost as a gas.
- A lot of nitrogen is also washed away during irrigation.
- Liquid nano urea has a shelf life of a year, and farmers need not be worried about “caking” when it comes in contact with moisture.
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Centre enhances Subsidy for Non-Urea Fertilizers
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizers subsidy
Mains level: Read the attached story
With urea and fertilizer prices shooting up in the wake of Russia’s invasion of Ukraine, the Union Cabinet approved an enhancement in subsidies on non-urea fertilisers for the upcoming Kharif crop, to ₹60,939 crore.
What is the news?
- The government fixes the retail price of urea and subsidises producers based on the difference between costs and the fixed selling price.
- It pays a subsidy to non-urea fertiliser makers on the basis of nutrient-based rates.
- The increase in the prices of Di-ammonium phosphate (DAP) and its raw material is in the range of about 80%.
Fertilizer Subsidy in India
- Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
- Fertiliser subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
How is the subsidy paid and who gets it?
- The subsidy goes to fertiliser companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates.
- From March 2018, a new so-called direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
- With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
How does this system work?
- A popular example of how this system works is that of the neem coated urea fertiliser.
- Its MRP (Maximum Retail Price) is fixed by the government at Rs. 5922.22 per tonne.
- The average cost of domestic production is at Rs 17,000 per tonne. The difference is footed by the centre in the form of subsidy.
- This fertiliser has high Nitrogen content and is cheaper than usual fertilizers.
- While this may be perceived as a good thing, excess of Nitrogen can disrupt the NPK (Nitrogen, Phosphorus and Potassium) balance in the soil.
What about non-urea fertilizers?
- The non-urea fertiliser is decontrolled or fixed by the companies.
- The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
- The government pays a flat per tonne subsidy to maintain the nutrition content of the soil, and ensure other fertilizers are economical to use.
Issues with such subsidies
- A flawed subsidy policy is harmful not just for the farmer, but to the environment as well.
- Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea.
- Consequently, excess usage contaminates groundwater.
- The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides. The WHO has prescribed limits been breached by Punjab, Haryana and Rajasthan.
- For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
Try answering this PYQ:
Q.What are the advantages of fertigation in agriculture? (CSP 2020)
1.Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.Select the correct answer using the code given below:
(a) 1, 2 and 3 only(b) 1,2 and 4 only
(c) 1,3 and 4 only
(d) 2, 3 and 4 only
Post your answers here.
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Fertilizer Subsidy to cost 62% more on input costs
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NPK fertilizers
Mains level: Fertilizer subsidies in India
An unprecedented spike in natural gas prices and other raw materials is set to inflate the fertilizer subsidy bill by a whopping 62% or ₹50,000 crores to ₹1,30,000 crore this fiscal.
Fertilizer Subsidy in India
- Fertilizer subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
- Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
How does it work?
- Fertilizer subsidy ultimately goes to the fertilizer company, even though it is the farmer that benefits.
- Before 2018, companies were reimbursed after the material was dispatched and received by the district railhead or designated godown.
- 2018 saw the beginning of DBT (Direct Benefit Transfer), which would transfer money directly to the retailer’s account.
- However, the companies will be paid only after the actual sale to the farmer.
- With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
What about non-urea fertilizers?
- Decontrolled system: The non-urea fertilizer is decontrolled or fixed by the companies.
- The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
Issues with such subsidies
- Flawed subsidy policy: This is harmful not just to the farmer, but to the environment as well.
- No permanent remedy: Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea.
- Excessive use: Consequently, excess usage contaminates groundwater.
- Emission: The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides causing emissions.
- Health hazards: For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
Post your answers in the comment box for this PYQ:
Q.What are the advantages of fertigation in agriculture? (CSP 2020)
1. Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.Select the correct answer using the code given below:
(a) 1, 2 and 3 only(b) 1,2 and 4 only
(c) 1,3 and 4 only
(d) 2, 3 and 4 only
Post your answers here.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
Reforming the fertilizer sector
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NBS
Mains level: Paper 3- Reforms in fertiliser sector
Context
Since 1991, when economic reforms began in India, several attempts have been made to reform the fertilizer sector to keep a check on the rising fertilizer subsidy bill, promote the efficient use of fertilizers, achieve balanced use of N, P, and K (nitrogen, phosphorus, and potassium), and reduce water and air pollution caused by fertilizers like urea.
Several attempts have been made to reform the fertilizer sector to keep a check on the rising fertilizer subsidy bill.
Background
- After years of unchanged prices, the budget of 1991 raised the issue prices of fertilizers by 40% on average. This rise was rolled down to 30% in a few months, with exemption to small and marginal farmers from the price increase.
- Due to opposition, the increase in Urea price was further rolled back to 17% over the pre-reform price.
- It resulted in a big shift in the composition of fertilizers used in the country in favor of urea and thus Nitrogen (N).
- The government started Nutrient Based Subsidy in 2010 to address the growing imbalance in fertilizer use, which was skewed towards urea (N).
- However, only non-nitrogenous fertilizers P and K (phosphorus and potassium) were included in NBS; urea was left out.
Need for reforms on three fronts
Reforms are needed to promote in three key areas:
1) The efficient use of fertilizers.
2) To achieve balanced use of N, P, and K (nitrogen, phosphorus, and potassium).
3) To reduce water and air pollution caused by fertilizers like urea.
Challenges in the fertilizer sector
A] Distortion in use due to price difference
- The Union Budget of July 1991 raised the issue prices of fertilizers by 40% on average.
- Due to opposition to increasing fertilizer prices, the increase in the price of urea was rolled back to 17% a year later over the pre-reform price.
- The shift in the composition of fertilizer used: This change disturbed the relative prices of various fertilizers and resulted in a big shift in the composition of fertilizers used in the country in favor of urea and thus N.
- Farmers tended to move towards balanced use, but policy and price changes reversed the favorable trend a couple of times in the last three decades.
- In 2019-20, fertilizer use per hectare of cultivated area varied from 70 kg of NPK in Rajasthan to 250 kg in Telangana
- Further, the composition of total plant nutrients in terms of the N, P, K ratio deviated considerably from the recommended or optimal NPK mix.
- It was 33.7:8.0:1 in Punjab and 1.3:0.7:1 in Kerala.
2] Increasing fertilizer subsidy
- Fertilizer subsidy has doubled in a short period of three years. For 2021-22, the Union Budget has estimated fertilizer subsidy at ₹79,530 crores (from ₹66,468 crores in 2017-18).
- The subsidy is likely to reach a much higher level due to the recent upsurge in the prices of energy, the international prices of urea and other fertilizers, and India’s dependence on imports.
- In order to minimize the impact of rising in prices on farmers, the bulk of the price rise is absorbed by the government through enhanced fertilizer subsidy.
- This is likely to create serious fiscal challenges.
- At current prices, farmers pay about ₹268 per bag of urea and the Government of India pays an average subsidy of about ₹930 per bag.
- Thus, taxpayers bear 78% of the cost of urea and farmers pay only 22%. This is expected to increase and is not sustainable.
3] Import dependence
- Total demand for urea: The total demand for urea in the country is about 34-35 million tonnes (mln t) whereas the domestic production is about 25 mln t.
- The requirement of Diammonium Phosphate (DAP) is about 12 mln t and domestic production is just 5 mln t.
- This leaves the gap of nearly 9-10 mln t for urea and 7 mln t for DAP, which is met through imports.
- The use of Muriate of Potash is about 3 mln t.
- This is entirely imported.
- The international prices of fertilizers are volatile and almost directly proportional to energy prices.
Need to shift our focus to Bio-fertilizers
- Bio-fertilizers are cheap, renewable, and eco-friendly, with great potential to supplement plant nutrients if applied properly. However, they are not a substitute for chemical fertilizers.
- They improve the health of the soil. Since it provides nutrients to the soil in a small and steady manner, its immediate effects are not very visible.
- Sales of biofertilizers in the country have not picked up because of a lack of knowledge and its slow impact on the productivity of the soil.
- The use of biofertilizers is necessary to maintain soil health as more and more use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health.
- Supplementary use of biofertilizers with chemical fertilizers can help maintain soil fertility over a long period.
- The overall strategy for increasing crop yields and sustaining them at a high level must include an integrated approach to the management of soil nutrients, along with other complementary measures.
Way forward
- Self-reliance: we need to be self-reliant and not depend on the import of fertilizers.
- In this way, we can escape the vagaries of high volatility in international prices.
- In this direction, five urea plants at Gorakhpur, Sindri, Barauni, Talcher, and Ramagundam are being revived in the public sector.
- Extend NBS model to urea: The government introduced the Nutrient Based Subsidy (NBS) in 2010 to address the growing imbalance in fertilizer use.
- However, only non-nitrogenous fertilizers (P and K) moved to NBS; urea was left out.
- We need to extend the NBS model to urea and allow for price rationalization of urea compared to non-nitrogenous fertilizers and prices of crops.
- Develop alternative sources of nutrition for plants: Discussions with farmers and consumers reveal a strong desire to shift towards the use of non-chemical fertilizers as well as a demand for bringing parity in prices and subsidy given to chemical fertilizers with organic and biofertilizers.
- This also provides the scope to use large biomass of crop that goes waste and enhance the value of livestock by-products.
- We need to scale up and improve innovations to develop alternative fertilizers.
- Improve fertilizer efficiency: India should pay attention to improving fertilizer efficiency through need-based use rather than broadcasting fertilizer in the field.
- The recently developed Nano urea by IFFCO shows promising results in reducing the usage of urea.
Consider the question “What are the challenges facing the fertiliser sector in India? How subsidies lead to distortion in the use of various types of fertilisers.”
Conclusion
These changes will go a long way in enhancing the productivity of agriculture, mitigating climate change, providing an alternative to chemical fertilizers and balancing the fiscal impact of fertilizer subsidy on the Union Budgets in the years to come.
Back2Basics: Nutrient Based Subsidy
- Under the NBS regime – fertilizers are provided to the farmers at subsidized rates based on the nutrients (N, P, K & S) contained in these fertilizers.
- Also, the fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
- The subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis – which are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
- NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1) of NPK fertilization is achieved.
[pib] Nutrient Based Subsidy (NBS) for Phosphatic & Potassic (P&K) Fertilizers
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Nutrient Based Subsidy (NBS) for P&K Fertilizers
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NPK fertilizers, Soil Health Card
Mains level: Nutrient Based Subsidy (NBS) Scheme
The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year last quarter of the year 2021-22.
An aspirant from rural agrarian background is quite habitual to hear about NPK 10-26-26, 20-20-0-13 & 12-32-16. They often get to find the plastic gunny bags mentioning this!
Nutrient Based Subsidy (NBS)
- The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.
- Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized P&K fertilizers, except for Urea based on the nutrient content present in them.
- It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.
- In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.
What is NPK?
- So now that you know what the numbers on fertilizer mean, you need to know why NPK is important to your plants.
- All plants need nitrogen, phosphorus, and potassium to grow. Without enough of any one of these nutrients, a plant will fail.
- Nitrogen (N): It is largely responsible for the growth of leaves on the plant.
- Phosphorus (P): It is largely responsible for root growth and flower and fruit development.
- Potassium (K): It is a nutrient that helps the overall functions of the plant perform correctly.
- Knowing the NPK values of fertilizer can help you select one that is appropriate for the type of plant you are growing.
What NBS provides?
- Fixing MRP of NPK fertilizers: The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.
- Maintaining stock level: The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.
- Inflation control: The NBS ensures that an adequate quantity of P&K is made available to the farmers at a statutory controlled price.
Issues with NBS
- Leaves urea: Urea which the most widely used, is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
- Cost on exchequer: Fertilizer subsidy is the second-biggest subsidy after food subsidy.
- Costs on Economy and Environment: The NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
- Black marketing: Subsidised fertilizers is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers.
Back2Basics: Soil Health Card (SHC)
- Soil Health Card (SHC) scheme is promoted by the Department of Agriculture & Co-operation under the Ministry of Agriculture and Farmers’ Welfare.
- An SHC is meant to give each farmer soil nutrient status of his/her holding and advice him/her on the dosage of fertilizers and also the needed soil amendments, that s/he should apply to maintain soil health in the long run.
- SHC is a printed report that a farmer will be handed over for each of his holdings.
- It will be made available once in a cycle of 2 years, which will indicate the status of soil health of a farmer’s holding for that particular period.
- The SHC given in the next cycle of 2 years will be able to record the changes in the soil health for that subsequent period.
Parameters of SHC:
- N, P, K (Macro-nutrients)
- Sulfur (S) (Secondary- nutrient)
- Zn, Fe, Cu, Mn, Bo (Micronutrients)
- pH, EC (Electrical conductivity) , OC (Organic content)
Try this PYQ:
The nation-wide ‘Soil Health Card Scheme’ aims at:
- expanding the cultivable area under irrigation.
- enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
- checking the overuse of fertilizers in farmlands.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Post your answers here.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] India to become self-reliant in Phosphatic Fertilizers
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizers
Mains level: Fertilizer subsidies in India
The Department of Fertilisers is ready with an Action Plan to make India Aatmanirbhar in Rock Phosphate, the key raw material of DAP and NPK Fertilizers.
What are Phosphatic Fertilizers?
- Phosphorus is the eleventh most abundant element on the earth. Commercial phosphate fertilizers are manufactured using phosphate rock.
- Approximately two-thirds of the world’s phosphate resources are derived from sedimentary and marine phosphate rock deposits.
- Ground rock phosphate has been used as a source of phosphorous for soils in the past.
- However, due to the low concentration of phosphorous in this native material, high transportation costs, and small crop responses, the usage of rock phosphate has reduced considerably in agriculture.
- On the other hand, the usage of phosphorous based fertilizers has grown significantly.
Which are the most common Ph fertilizers?
- The most commonly used phosphatic fertilizers are Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), NPKs, and SSP.
- DAP is the world’s most widely used phosphorus fertilizer. It is popular due to its relatively high nutrient content and its excellent physical properties.
- DAP is an excellent source of phosphorus (P) and nitrogen (N) for plant nutrition.
- It provides the correct proportion of phosphorous and nitrogen for the farming of grains such as wheat, barley, fruits, and vegetables.
- NPKs, also called compound fertilizers, are fertilizers that contain all three nutrients, nitrogen, phosphorus, and potassium in different proportions.
Also read
[pib] Nutrient Based Subsidy (NBS) for Phosphatic & Potassic (P&K) Fertilizers
Why need Phosphorus?
- Phosphorus is an essential nutrient required for plant growth. It helps in root development, plant maturation, and seed development.
- If soils are deficient in phosphorus, food production becomes restricted, unless the nutrient is added in the form of fertilizers.
- Hence, to increase food production, an adequate amount of phosphorus is required.
- Along with nitrogen and potassium, phosphorus is one of the most important elements for plant life.
- Soil gets depleted of phosphorus due to several reasons including being washed away by rain. Therefore, modern farming is reliant on the use of phosphorus-based fertilizers.
Consumption in India
- Rock Phosphate is the key raw material for DAP and NPK fertilisers and India is 90% dependent on imports.
- Volatility in international prices affects the domestic prices of fertilisers and hinders the progress and development of the agriculture sector in the country.
Answer this PYQ in the comment box:
Q.What are the advantages of fertigation in agriculture? (CSP 2020)
1.Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.Select the correct answer using the code given below:
(a) 1, 2 and 3 only(b) 1,2 and 4 only
(c) 1,3 and 4 only
(d) 2, 3 and 4 only
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Nutrient Based Subsidy (NBS) for Phosphatic & Potassic (P&K) Fertilizers
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nutrient Based Subsidy (NBS) Scheme
Mains level: Fertilizer subsidies in India
The Union Cabinet has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22.
Key Points
About Di-Ammonium Phosphate (DAP):
- DAP is the second most commonly used fertiliser in India after urea.
- Farmers normally apply this fertiliser just before or at the beginning of sowing, as it is high in phosphorus (P) that stimulates root development.
- DAP (46% P, 18% Nitrogen) is the preferred source of Phosphorus for farmers. This is similar to urea, which is their preferred nitrogenous fertiliser containing 46% N.
About Subsidy Scheme for Fertilisers:
-
- Under the current scheme, the MRP of Urea is fixed but the subsidy can vary while MRP of DAP is decontrolled (i.e subsidy is fixed but the MRP can vary).
- All Non-Urea based fertilisers are regulated under Nutrient Based Subsidy Scheme.
About Nutrient-Based Subsidy (NBS) Regime:
-
- Under the NBS regime – fertilizers are provided to the farmers at the subsidized rates based on the nutrients (N, P, K & S) contained in these fertilizers.
- Also, the fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
- The subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis – which are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
- NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1) of NPK fertilization is achieved.
- This would improve soil health and as a result the yield from the crops would increase, resulting in enhanced income to the farmers.
- Also, as the government expects rational use of fertilizers, this would also ease off the burden of fertilizer subsidy.
- It is being implemented from April 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
Issues Related to NBS:
1.Imbalance in Price of Fertilisers:
- Urea is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
- There is an imbalance as the price of fertilizers (other than urea) — which were decontrolled have gone up from 2.5 to four times during the 2010-2020 decade.
- However, since 2010, the price of urea has increased only by 11%. This has led to farmers using more urea than before, which has further worsened fertilizer imbalance.
2.Costs on Economy and Environment :
Fertilizer subsidy is the second-biggest subsidy after food subsidy, the NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
3.Black Marketing :
- Subsidised urea is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers.
- It is being smuggled to neighbouring countries like Bangladesh and Nepal.
Implications of Increasing the Subsidy on DAP :
- As farmers will start sowing operations for Kharif Crops, it is highly important for them to get the fertilisers at subsidised rate so as to keep inflation at check.
- Politically, too, to turn down the farmer protests, during the time of the Covid’s second wave, is the last thing the government would want.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Fertilizer Subsidy in India
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fertilizer subsidies in India
Mains level: Not Much
A historic decision was taken to increase the subsidy for DAP fertiliser from Rs. 500 per bag to Rs. 1200 per bag, which is an increase of 140%.
Hike in subsidies
- It was discussed that the price of fertilizers is undergoing an increase due to the rising prices of phosphoric acid, ammonia etc internationally.
- Despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs.1200 and the central government has decided to bear all the burden of price hike.
- The amount of subsidy per bag has never been increased so much at once.
Fertilizer Subsidy in India
- Subsidy as a concept originated during the Green Revolution of the 1970s-80s.
- Fertiliser subsidy is purchasing by the farmer at a price below MRP (Maximum Retail Price), that is, below the usual demand-and-supply-rate, or regular production and import cost.
- Fertiliser subsidy ultimately goes to the fertiliser company, even though it is the farmer that benefits.
- Before 2018, companies were reimbursed after the material was dispatched and received by the district railhead or designated godown.
- 2018 saw the beginning of DBT (Direct Benefit Transfer), which would transfer money directly to the retailer’s account.
- However, the companies will be paid only after the actual sale to the farmer.
Put answers in the comment box for this PYQ:
Q.What are the advantages of fertigation in agriculture? (CSP 2020)
1.Controlling the alkalinity of irrigation water is possible.
2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
3. Increased availability of nutrients to plants is possible.
4. Reduction in the leaching of chemical nutrients is possible.Select the correct answer using the code given below:
(a) 1, 2 and 3 only(b) 1,2 and 4 only
(c) 1,3 and 4 only
(d) 2, 3 and 4 only
How is the subsidy paid and who gets it?
- The subsidy goes to fertiliser companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates.
- Companies, until recently, were paid after their bagged material had been dispatched and received at a district’s railhead point or approved godown.
- From March 2018, a new so-called direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
- With the DBT system, each retailer — there is over 2.3 lakh of them across India — now has a point-of-sale (PoS) machine linked to the Department of Fertilizers’ e-Urvarak DBT portal.
How does this system work?
- A popular example of how this system works is that of the neem coated urea fertiliser.
- Its MRP (Maximum Retail Price) is fixed by the government at Rs. 5922.22 per tonne.
- The average cost of domestic production is at Rs 17,000 per tonne. The difference is footed by the centre in the form of subsidy.
- This fertiliser has high Nitrogen content and is cheaper than usual fertilizers.
- While this may be perceived as a good thing, excess of Nitrogen can disrupt the NPK (Nitrogen, Phosphorus and Potassium) balance in the soil.
What about non-urea fertilizers?
- The non-urea fertiliser is decontrolled or fixed by the companies.
- However, the government pays a flat per tonne subsidy to maintain the nutrition content of the soil, and ensure other fertilizers are economical to use.
- The non- urea fertilizers are further divided into two parts, DAP (Diammonium Phosphate) and MOP (Muriate of Phosphate).
Issues with such subsidies
- A flawed subsidy policy is harmful not just for the farmer, but to the environment as well.
- Indian soil has low Nitrogen use efficiency, which is the main constituent of Urea. Consequently, excess usage contaminates groundwater.
- The bulk of urea applied to the soil is lost as NH3 (Ammonia) and Nitrogen Oxides. The WHO has prescribed limits been breached by Punjab, Haryana and Rajasthan.
- For human beings, “blue baby syndrome” is a common side ailment caused by Nitrate contaminated water.
- This hampers the ability of the body to carry Nitrogen, with a high probability of death.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
How dangerous is Ammonia?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ammoni compounds and its uses
Mains level: Not Much
Two persons died and several took ill in a major ammonia gas leakage at a fertilizers unit at Prayagraj.
Try this PYQ:
Q. With reference to chemical fertilizers in India, consider the following statements:
- At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
- Ammonia, which is an input of urea, is produced from natural gas.
- Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of all oil refineries.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1,2 and 3
Ammonia
- Ammonia is critical in the manufacturing of fertilizers and is one of the largest-volume synthetic chemicals produced in the world.
- More than 80 per cent of ammonia made is consumed in the manufacturing of fertilizer, and most of the remainder goes into the production of formaldehyde.
- A tri-hydroid of nitrogen (NH3), ammonia is a building block for ammonium nitrate (NH4NO3) that is used in agriculture as a high-nitrogen fertilizer.
Why is it harmful?
- According to experts in Chemistry, ammonia is stored for industrial use in liquid form under high pressure or in gaseous form at low temperature.
- In such cases, the cause of death is always suffocation as in the case of Prayagraj incident, the victims must have been very close to the point of a gas leak.
Effects on the human body
- Ammonia, even in moderate concentration, can cause irritation to eyes, skin, nose and throat.
- It interacts immediately upon contact with moisture present in the skin, eyes, oral cavity, and respiratory tract to form ammonium hydroxide.
- It is very caustic and disrupts the cell membrane lipids, ultimately leading to cellular destruction.
- As cell proteins break down, water is extracted, resulting in an inflammatory response that causes further damage.
Secretion in humans
- Ammonia, which is highly soluble in water, is found in soil, air, and water; it is naturally present in the body.
- It is secreted by the kidneys to neutralize excess acid.
- However, it is highly diluted when in the environment and does not affect the human body to a noticeable level.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Calcium Nitrate and Boronated Calcium Nitrate
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Calcium Nitrate
Mains level: India's import dependence of fertilizers
Union Ministry of Chemicals & Fertilizers has launched an indigenous variety of fertilizers- ‘Calcium Nitrate’ & ‘Boronated Calcium Nitrate’.
Try this PYQ:
Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture?
(a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms
(b) Neem coating slows down the rate of dissolution of urea in the soil
(c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields
(d) It is a combination of a weedicide and a fertilizer for particular crops
What is Calcium Nitrate?
- Calcium nitrate is used as a water-soluble fertilizer in agriculture. In addition, this product is also used in wastewater treatment and to increase the strength of cement concrete.
- Last year, around 1.25 lakh metric tons (1,23,000 tons) of Calcium Nitrate was imported in the country.
- Of this, 76% was imported from China and the rest from other countries like Norway and Israel.
- These indigenous varieties will provide a quality product at a cheaper rate to the farmer community in the country than imported ones.
Uses of Calcium nitrate
- The fertilizer grade calcium nitrate is popular in the greenhouse and hydroponics. It is also used to control certain plant diseases.
- Calcium nitrate is also used in wastewater pre-conditioning for odour emission prevention.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] Nutrient Based Subsidy (NBS) rates and its fixation
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NBS schemes
Mains level: NBS scheme and its benefits
Union Cabinet has approved fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the year 2020-21.
Fertilizer subsidy accounts for large fiscal subsidies (about 0.73 lakh crore or 0.5 per cent of GDP), the second-highest after food. We can expect a question like – “Discuss the role of NBS in ensuring land fertility and farm productivity in India.”
About Nutrient Based Subsidy (NBS) Scheme
- The NBS Scheme for fertilizer was initiated in the year 2010 and is being implemented by the Department of Fertilizers.
- Government is making available fertilizers, Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
What NBS provides?
- The scheme allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potash fertilizers at reasonable levels.
- The MRP will be decided considering the domestic and international prices of P&K fertilizers, inventory level in the country and the exchange rates.
- The NBS ensures that adequate quantity of P&K is made available to the farmers at a statutory controlled price.
Fertilizers covered
- Under this, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea based on the nutrient content present in them.
- It is largely for secondary nutrients like N, P, S and K and micronutrients which are very important for crop growth and development.
- In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.
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Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.
[pib] APNA UREA – SonaUgle
Note4Students
From UPSC perspective, the following things are important :
Prelims level: APNA UREA - SonaUgle
Mains level: Not Much
APNA UREA – SonaUgle
- The Union Minister for Chemicals and Fertilizers launched the “APNA UREA – SonaUgle” brand of Hindustan Urvarak & Rasayan Limited (HURL).
- HURL is Joint Venture Company promoted by the three Maharatna Companies i.e. Coal India Limited (CIL), NTPC Limited (NTPC) and Indian Oil Corporation Limited (IOCL) as the lead promoters with FCIL and HFCL as other two partners.
- The commissioning of the HURL’s three Units in the states of UP, Bihar and Jharkhand will open forward and backward linkages for business activity in the Eastern part of India.
- It will be instrumental in opening new avenues for the generation of income and employment in the Eastern part of our country.
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