The Government of India has recently approved a substantial subsidy for phosphatic and potassic (P&K) fertilisers for the Kharif season of 2025. This decision aims to ensure that farmers have access to essential nutrients at reasonable prices. The Union Cabinet, led by Prime Minister Narendra Modi, sanctioned a budget of Rs 37,216 crore to support this initiative.
Subsidy
The approved subsidy will be in effect from April 1, 2025, to September 30, 2025. It focuses on maintaining the retail price of Di-ammonium phosphate (DAP) while ensuring farmers receive sufficient fertilisers. The subsidy amount is higher than that allocated for the Rabi season of 2024-25, which indicates the government’s commitment to the agricultural sector.
Budgetary Allocation
The total budgetary requirement for the Kharif season is Rs 37,216.15 crore. This funding will help bridge the gap between the rising costs of fertilisers and the need for affordable agricultural inputs. The government is also rationalising the subsidy in response to fluctuating international fertiliser prices.
Implementation of the Nutrient Based Subsidy Scheme
The subsidy will be distributed to fertiliser companies based on approved rates, ensuring that farmers benefit from lower prices. The Nutrient Based Subsidy (NBS) Scheme, which has been in place since April 2010, governs the distribution of these subsidies. This scheme allows for the availability of 28 grades of P&K fertilisers at subsidised rates.
Impact on Farmers
This subsidy is expected to have positive impact on farmers by ensuring that they have access to vital nutrients for their crops. The government’s initiative aims to enhance agricultural productivity and support the livelihoods of farmers across the country.
Market Trends
The decision to provide a substantial subsidy reflects the government’s awareness of market trends. The rising international prices of fertilisers have prompted the need for such interventions to maintain agricultural stability. This proactive approach is crucial for sustaining the agricultural economy.
Future Prospects
The government’s commitment to providing subsidies indicates a long-term strategy to support the agricultural sector. Continuous monitoring of international fertiliser prices will be essential to adapt and adjust subsidy rates in the future.
Questions for UPSC:
- Discuss the significance of the Nutrient Based Subsidy Scheme for Indian agriculture.
- Critically examine the impact of international fertiliser prices on domestic agriculture in India.
- What are the advantages of providing subsidies on fertilisers to farmers? Explain with examples.
- What role do government policies play in ensuring food security in India? Discuss with suitable examples.
Answer Hints:
1. Discuss the significance of the Nutrient Based Subsidy Scheme for Indian agriculture.
- Introduced in April 2010 to make fertilisers affordable for farmers.
- Encourages balanced nutrient application, improving soil health and crop yield.
- Supports diverse fertiliser grades, enhancing farmers’ choices.
- Mitigates the impact of fluctuating fertiliser prices on agricultural production.
- Promotes sustainable farming practices through rational subsidy distribution.
2. Critically examine the impact of international fertiliser prices on domestic agriculture in India.
- Fluctuating international prices directly affect local fertiliser costs.
- Increased prices can lead to higher production costs for farmers.
- Farmers may reduce fertiliser usage, impacting crop yields and food production.
- Government subsidies are essential to buffer against these price shocks.
- International price trends influence policy decisions and subsidy adjustments.
3. What are the advantages of providing subsidies on fertilisers to farmers? Explain with examples.
- Reduces the financial burden on farmers, making inputs more accessible.
- Encourages optimal fertiliser use, leading to better crop productivity (e.g., increased yields of wheat and rice).
- Stabilizes market prices, ensuring consistent supply of essential nutrients.
- Supports smallholder farmers who are more vulnerable to price fluctuations.
- Promotes agricultural sustainability by enabling balanced nutrient management.
4. What role do government policies play in ensuring food security in India? Discuss with suitable examples.
- Government policies regulate prices and availability of essential agricultural inputs.
- Subsidies on fertilisers and seeds help maintain crop production levels.
- Public distribution systems ensure food access for vulnerable populations (e.g., PDS for subsidised grains).
- Investment in agricultural infrastructure (e.g., irrigation, storage) boosts productivity.
- Policies aimed at promoting research and innovation enhance crop resilience to climate change.
