Context:
Fertilizers committee warns against under-funding of nutrient subsidy schemes
Nutrient Based Subsidy (NBS) Regime:
- NBS regime provides subsidies for fertilizers based on their nutrient content (Nitrogen, Phosphorus, Potassium, and Sulphur).
- Objective – To promote balanced fertilizer use, improve soil health, and enhance agricultural productivity.
- Implementation – By the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
- Key Features –
- Subsidy Mechanism – Subsidies are announced annually for each nutrient on a per kilogram basis; Additional subsidies are provided for fertilizers fortified with secondary and micronutrients like molybdenum and zinc.
- Balanced Fertilization – Aims to achieve an optimal N:P:K ratio of 4:2:1.
- Market-Driven Pricing – Farmers purchase fertilizers at market prices, with the government reimbursing the subsidy to manufacturers.
- Challenges –
- Imbalanced Fertilizer Use – Overuse of urea due to its exclusion from the NBS regime.
- Subsidy Burden – High fiscal cost, ranking as the 2nd largest subsidy after food.
- Black Marketing – Diversion of subsidized fertilizers for non-agricultural purposes.
- Related Government Initiatives –
- PM PRANAM Scheme – Promotes the use of alternate nutrients to reduce dependency on chemical fertilizers.
- Soil Health Card Scheme – Provides farmers with information on soil nutrient status and recommendations for balanced fertilization.
Source: TH
Previous Year Question
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?
[UPSC Civil Services – 2020 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Answer: (b)