The Cabinet Committee on Economic Affairs (CCEA) has recently approved a comprehensive package of schemes aimed at uplifting the well-being of farmers, rejuvenating soil productivity, and ensuring food security and environmental sustainability. With a significant outlay of Rs. 3,70,128.7 crore, these schemes focus on promoting sustainable agriculture practices and enhancing the overall economic betterment of farmers.
Urea Subsidy Scheme:
The package includes a dedicated Urea Subsidy Scheme to ensure the constant availability of urea at an affordable price for farmers. Under this scheme, farmers can purchase urea at a fixed price of Rs. 242 per 45 kg bag, excluding taxes and Neem coating charges. The package allocates a substantial amount of Rs. 3,68,676.7 crore for urea subsidy over a three-year period from 2022-23 to 2024-25. This initiative aims to provide consistent support to farmers in accessing essential fertilizers at reasonable prices.
Nutrient-based Subsidy:
Recognizing the significance of essential nutrients for crop productivity, the government has approved a Nutrient-based Subsidy of Rs. 38,000 crore for the upcoming Kharif season in 2023-24. This subsidy will offer financial assistance to farmers for procuring crucial nutrients necessary for optimal crop growth. By supporting farmers in accessing essential nutrients, this scheme promotes soil health and sustainable agricultural practices.
Increasing Fertilizer Subsidy:
The government has demonstrated its commitment to supporting farmers by substantially increasing the fertilizer subsidy. From Rs. 73,067 crore in 2014-15, the fertilizer subsidy has been raised to Rs. 2,54,799 crore in 2022-23. This significant increase reflects the government’s proactive approach in mitigating the impact of rising global fertilizer prices on farmers. By providing adequate subsidies, the government ensures that farmers are shielded from the adverse effects of escalating fertilizer costs.
Promoting Nano Urea:
To further enhance fertilizer efficiency and reduce costs for farmers, the government plans to establish eight Nano urea plants by 2025-26. These plants will have a combined production capacity of 44 crore bottles, equivalent to 195 LMT (lac metric tonnes) of conventional urea. Nano urea, which releases nutrients in a controlled manner, improves nutrient use efficiency in crops. This innovative approach not only benefits farmers but also contributes to sustainable agriculture practices.
Protecting Farmers from Rising Fertilizer Prices:
The global fertilizer market has witnessed significant price increases due to changing geopolitical situations and rising raw material costs. Despite these challenges, the Government of India has taken proactive measures to protect its farmers. By increasing the fertilizer subsidy, the government ensures that farmers can access fertilizers at affordable prices, enabling them to sustain their agricultural activities without bearing the brunt of steep price rises.
