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Union Cabinet Approves Nutrient Based Subsidy Rates for 2022-23

The Indian government has recently approved Nutrient Based Subsidy (NBS) rates for the various nutrients of Rabi and Kharif Season for 2022-23. This step will have a significant impact on farmers, the economy, and agricultural practices in the country.

What is the Nutrient Based Subsidy (NBS) Regime?

Initiated by the Department of Fertilizers, Ministry of Chemicals & Fertilizers in April 2010, the NBS regime provides fertilizers to farmers at subsidized rates based on the nutrients contained in them. These include Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S). In addition, fertilizers fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy. Under this policy, the government expects rational use of fertilizers which would ultimately ease off the burden of fertilizer subsidy.

Significance of NBS

The availability of subsidized P&K Fertilizers through the NBS regime will ensure that DAP (Di-Ammonium Phosphate) and other P&K fertilizers are available to farmers at affordable prices during the Kharif season. This supports agricultural productivity and food security in India. Moreover, the policy is crucial for effective resource allocation and ensures that subsidies are directed toward the farmers who need them the most.

Problematic Aspects of NBS

The implementation of the NBS regime faces several economic and environmental challenges. It imposes a significant financial burden on the economy, ranking as the second-largest subsidy after food subsidy. The policy also results in imbalanced fertilizer usage due to pricing disparity, leading to adverse environmental impact like soil degradation. Other issues include black marketing and diversion of subsidized urea, leakage and misuse of resources, and regional disparities in agricultural practices.

Proposed Way Forward

To address these problems, a uniform policy for all fertilizers encompassing value-added and customized products that provide efficient nitrogen delivery is necessary. In the long term, it has been suggested that NBS could be replaced by a flat per-acre cash subsidy. This would allow farmers to buy any fertilizer they need. Striking a balance between price control, affordability, and sustainable nutrient management is crucial to achieve the desired outcomes of the NBS regime.

The Major Cropping Seasons

India largely has two crop seasons: Kharif (or monsoon) and Rabi (or winter). Kharif crops are sown during the southwest monsoon season and harvested post-monsoon. They require a lot of water and hot weather to grow. On the other hand, Rabi crops are sown around the retreating Northeast monsoon season, beginning by October, and harvested during April and May. They need a warm climate for seed germination and a cold climate for growth. The third season, known as Zaid, falls between Rabi and Kharif during which seasonal fruits, vegetables, and fodder crops are planted.

Each of these seasons sees the cultivation of different crops. Rice, maize, pulses such as urad, moong dal, and millets are among the key Kharif crops, while wheat, gram, peas, barley are major Rabi crops. These cropping patterns, however, depend significantly on the rainfall patterns and regional soil conditions.

Previous UPSC Questions Related to the Topic

Questions related to the Kharif crops and NBS have been featured in the UPSC Civil Services Examination. In 2019, one question asked about the area under various crops’ cultivation. In 2013, the candidates were asked to identify the Kharif crops from a given list. Understanding these patterns is essential to answer such questions correctly.

The Nutrient Based Subsidy (NBS) regime plays a crucial role in India’s agricultural sector and holds enormous significance for farmers. However, several issues need urgent attention to make it more effective and beneficial for all stakeholders.

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