IAS Coaching in Bangalore - UREA SUBSIDY IN INDIA


About Di-Ammonium Phosphate (DAP):


  • After urea, DAP is India’s second most commonly used fertiliser.
  • This fertiliser is typically applied soon before or at the start of sowing because it is strong in phosphorus (P), which promotes root development.
  • Farmers favor DAP (46 percent P, 18 percent Nitrogen) as a supply of phosphorus. This is identical to urea, their preferred nitrogenous fertilizer with a 46 percent nitrogen content.


About the Fertilizer Subsidy Scheme:


  • The MRP of urea is fixed under the current arrangement, however the subsidy can change, but the MRP of DAP is uncontrolled (i.e subsidy is fixed but the MRP can vary).
  • The Nutrient Based Subsidy Scheme regulates all non-urea based fertilizers.


The NBS (Nutrient-Based Subsidy) Program:


  • Fertilizers are distributed to farmers at subsidized rates depending on the nutrients (N, P, K, and S) included in these fertilizers under the NBS regime.
  • In addition, fertilizers supplemented with secondary and micronutrients such as molybdenum (Mo) and zinc are given a boost.
  • The government announces annual Phosphatic and Potassic (P&K) fertilizer subsidies for each nutrient on a per kg basis, which are calculated using foreign and domestic P&K fertilizer prices, exchange rates, inventory levels in the country, and other factors.
  • The NBS strategy is to enhance the use of P&K fertilizers in order to achieve an optimal NPK fertilization balance (N:P:K= 4:2:1).
  • As a result, soil health would improve, and agricultural yields would increase, resulting in increased income for farmers.
  • Furthermore, because the government anticipates rational fertilizer use, the burden of fertilizer subsidies would be reduced.
  • The Ministry of Chemicals and Fertilizers’ Department of Fertilizers has been implementing it since April 2010.

Source: THE HINDU.