Policy reforms in India's fertiliser sector are overdue for sustainability and efficiency
India's fertiliser sector is plagued by inefficiencies and unsustainable practices, necessitating urgent policy reforms. The current subsidy regime, while aiming to support farmers, distorts market prices, encourages overuse of certain fertilisers, and leads to environmental degradation. The article advocates for a shift towards nutrient-based subsidies, direct benefit transfers, and promoting balanced fertiliser use. Diversifying import sources, investing in domestic production, and improving logistics are crucial to reduce import dependency and ensure timely availability. Reforms must also address the environmental impact of fertiliser use and promote sustainable agricultural practices to enhance food security and farmer welfare.
Key Points
- India's fertiliser sector requires urgent policy reforms to address inefficiencies and environmental concerns.
- The current subsidy system distorts market prices, encourages imbalanced fertiliser use, and leads to environmental degradation.
- Transitioning to nutrient-based subsidies and direct benefit transfers can improve efficiency and promote balanced nutrient application.
- Diversifying import sources, boosting domestic production, and enhancing logistics are vital to reduce import dependency and ensure timely supply.
- Reforms should also focus on promoting sustainable agricultural practices and addressing the environmental impact of fertiliser overuse.
Exam Facts
- India imports 30% of its urea, 90% of its DAP, and 100% of its MOP.
- Fertiliser subsidies are projected to be ₹1.75 lakh crore in 2024-25.
- The share of urea in total fertiliser consumption is 50-60%.
- The government aims to achieve self-sufficiency in urea by 2025.
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