The parliamentary Standing Committee on Chemicals and Fertilizers has raised concerns over reduced funding for fertilizer subsidies, warning that it could negatively impact farmers.
Key Findings of the Parliamentary Standing Committee on Chemicals and Fertilizers
- Geopolitical Risks Disrupting Fertilizer Security: Global supply chain disruptions and price fluctuations have caused shortages of key fertilizers like Diammonium Phosphate (DAP).
- Heavy reliance on imports makes India vulnerable to external shocks.
- Lack of Domestic Mining for Critical Raw Materials: Despite agreements with fertilizer-producing nations, there has been no progress on securing mining leases for phosphates and potash.
- Domestic exploration and refining could reduce import dependency.
- Mismatch in Soil-Specific Fertilizer Grades: Current NPKS (Nitrogen- Phosphorus-cPotassium- Sulphur) grades do not always match regional soil needs.
- Farmers often incur extra costs to customize blends, increasing financial burden.
- Weak Oversight in Direct Benefit Transfer (DBT) System: No robust mechanism to verify genuine beneficiaries, leading to potential subsidy misuse.
- Strengthening authentication processes could improve efficiency.
- Nano Fertilizers Show Promise but Need More Research: Nano Urea & Nano DAP have demonstrated yield improvements in crops like peas (up to 14.8%) and sugarcane (up to 4%).
- However, large-scale adoption requires further field trials and farmer awareness.
Concerns Over Underutilization of Funds
- The report noted poor fund utilization in 2024-25:
- Indigenous phosphorus and potassium (PK) fertilizers were 20% unused.
- Imported PK fertilizers 12% unused.
- Indigenous urea 14.76% unused.
- Market Development Assistance (MDA) 59.57% unused.
Diammonium phosphate (DAP)
- Diammonium phosphate is a widely used fertilizer with the chemical formula (NH₄)₂HPO₄.
- It contains 18% nitrogen (N) and 46% phosphorus (P₂O₅), making it an excellent source of both nutrients for plant growth.
- Uses of DAP:
- Agriculture: It is used as a high-phosphorus fertilizer to promote root development and early plant growth.
- Industry: DAP is used in fire retardants, yeast nutrient in winemaking, and as a buffering agent in various chemical processes.
- Properties:
- Highly soluble in water, making it effective for fertigation.
- Slightly alkaline in reaction.
- Quickly available nutrients for plants.
Urea
- Urea is a widely used nitrogen fertilizer with 46% nitrogen (N) content, making it the highest nitrogen-concentrated solid fertilizer.
- Uses of Urea:
- Agriculture: Used as a nitrogen source for crops, promoting leaf and vegetative growth. It is applied directly to the soil or used in foliar sprays.
- Industry: Used in the production of plastics, adhesives, and resins. It is also a key component in diesel exhaust fluid (DEF) to reduce emissions.
- Properties:
- Highly soluble in water.
- Neutral pH but can lead to soil acidification over time.
- Volatilization risk: Urea can convert to ammonia gas if not properly incorporated into the soil.
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Key Recommendations of the Parliamentary Committee
- Additional Funds for Subsidy Schemes: The Fertilizers Ministry projected ₹1,84,704.63 crore for 2025-26, but the Finance Ministry reduced it by 7.38% to ₹1,71,082.44 crore.
- Cuts affect both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.
- The panel urged the ministry to request more funds at the revised estimate stage to avoid disruptions.
- Expand Domestic Production of Nano Fertilizers: The committee recommended faster establishment of nano urea production units to meet demand.
- Secure Mining Leases for Self-Sufficiency: The panel suggested long-term mining agreements to reduce import dependency.
- Fertilizer Crisis Early Warning System: To address supply disruptions, create a Fertilizer Crisis Early Warning System (FCEWS) for shortage prediction and strategic reserve management.
Nutrient Based Subsidy (NBS)
- Under Nutrient Based Subsidy (NBS), the government fixed a per-kg subsidy for each fertilizer nutrient: Nitrogen (N), phosphorus (P), potash (K) and sulfur (S).
- NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1) of NPK fertilization is achieved.
- Nodal Ministry: Ministry of Chemicals and Fertilizers
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Conclusion
The panel emphasized the importance of urea in food production and urged the continuation of subsidy schemes. It also called for greater promotion of nano fertilizers among farmers to enhance agricultural productivity.
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