Introduction:
India’s fertiliser policy has played a crucial role in ensuring food security since the Green Revolution. However, recent global disruptions such as the Russia–Ukraine War have exposed structural inefficiencies, making reform imperative.
Structural Issues in Fertiliser Policy:
- Price Distortion and Nutrient Imbalance:
- Heavy subsidy on urea leads to its overuse, while phosphatic and potassic fertilisers are underutilised.
- This distorts the ideal N: P: K ratio, degrading soil health.
- Low Nutrient Use Efficiency (NUE):
- NUE remains around 30–40%, indicating inefficient absorption and wastage of fertilisers.
- High Fiscal Burden:
- Fertiliser subsidies impose a significant burden on government finances, especially during global price spikes.
- Environmental Degradation:
- Excess nitrogen leads to groundwater contamination and emissions of nitrous oxide, a potent greenhouse gas.
- Import Dependence:
- India relies on imports for key fertilisers, making it vulnerable to geopolitical disruptions and price volatility.
- Leakages and Diversion:
- Subsidised fertilisers are often diverted for non-agricultural uses due to price differentials.
Reform Measures for Efficiency and Sustainability:
- Direct Benefit Transfer (DBT) to Farmers:
- Shifting subsidy delivery directly to farmers can reduce leakages and promote rational usage.
- Rationalisation of Fertiliser Pricing:
- Align prices with nutrient content to encourage balanced fertilisation practices.
- Promotion of Alternative Inputs:
- Encourage use of biofertilisers, organic manure, and integrated nutrient management.
- Technological Interventions:
- Adoption of neem-coated urea, precision farming, and fertigation can improve efficiency.
- Enhancing Domestic Production:
- Increase indigenous fertiliser production and diversify import sources to reduce vulnerability.
- Awareness and Extension Services:
- Educate farmers on balanced fertiliser use and sustainable practices.
Conclusion:
Reforming fertiliser policy is essential to transition from a subsidy-driven model to an efficiency-driven framework, ensuring long-term agricultural sustainability, environmental protection, and fiscal prudence.
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