{"id":160027,"date":"2025-03-25T19:46:40","date_gmt":"2025-03-25T14:16:40","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=160027"},"modified":"2025-03-25T19:46:40","modified_gmt":"2025-03-25T14:16:40","slug":"under-funding-of-fertilizer-subsidies","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/under-funding-of-fertilizer-subsidies","title":{"rendered":"Parliamentary Panel Warns Against Under-Funding of Fertilizer Subsidies"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The <\/span><b>parliamentary Standing Committee on Chemicals and Fertilizers<\/b><span style=\"font-weight: 400;\"> has raised concerns over reduced funding for <\/span><b>fertilizer subsidies<\/b><span style=\"font-weight: 400;\">, warning that it could negatively impact farmers.\u00a0<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Key Findings of the Parliamentary Standing Committee on Chemicals and Fertilizers<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Geopolitical Risks Disrupting Fertilizer Security<\/b><span style=\"font-weight: 400;\">: Global supply chain disruptions and price fluctuations have caused shortages of key fertilizers like Diammonium Phosphate (DAP).\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Heavy reliance on imports makes India vulnerable to external shocks.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of Domestic Mining for Critical Raw Material<\/b><span style=\"font-weight: 400;\">s: Despite agreements with fertilizer-producing nations, there has been no progress on securing mining leases for phosphates and potash.\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Domestic exploration and refining could reduce import dependency.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mismatch in Soil-Specific Fertilizer Grades<\/b><span style=\"font-weight: 400;\">: Current NPKS (Nitrogen- Phosphorus-cPotassium- Sulphur) grades do not always match regional soil needs.\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Farmers often incur extra costs to customize blends, increasing financial burden.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Weak Oversight in Direct Benefit Transfer (DBT) System:<\/b><span style=\"font-weight: 400;\"> No robust mechanism to verify genuine beneficiaries, leading to potential subsidy misuse.\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Strengthening authentication processes could improve efficiency.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Nano Fertilizers Show Promise but Need More Research<\/b><span style=\"font-weight: 400;\">: Nano Urea &#038; Nano DAP have demonstrated yield improvements in crops like peas (up to 14.8%) and sugarcane (up to 4%).\u00a0\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">However, large-scale adoption requires further field trials and farmer awareness.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Concerns Over Underutilization of Funds<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The report noted <\/span><b>poor fund utilization in 2024-25:\u00a0\u00a0<\/b>\n<ul>\n<li><b>Indigenous phosphorus and potassium (PK) fertilizers were 20% unused.\u00a0\u00a0<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Imported <\/span><b>PK fertilizers 12% unused.\u00a0\u00a0<\/b><\/li>\n<li><b>Indigenous urea 14.76% unused.\u00a0\u00a0<\/b><\/li>\n<li><b>Market Development Assistance (MDA) 59.57% unused.\u00a0\u00a0<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7983%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Diammonium phosphate (DAP)<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Diammonium phosphate is a widely used fertilizer with the chemical formula <\/span><b>(NH\u2084)\u2082HPO\u2084.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It contains <\/span><b>18% nitrogen (N) and 46% phosphorus (P\u2082O\u2085),<\/b><span style=\"font-weight: 400;\"> making it an excellent source of both nutrients for plant growth.<\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Uses of DAP:<\/b><\/span>\n<ul>\n<li><span style=\"color: #000000;\"><b>Agriculture:<\/b><span style=\"font-weight: 400;\"> It is used as a <\/span><b>high-phosphorus fertilizer<\/b><span style=\"font-weight: 400;\"> to promote root development and early plant growth.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Industry:<\/b><span style=\"font-weight: 400;\"> DAP is used in <\/span><b>fire retardants, yeast nutrient in winemaking<\/b><span style=\"font-weight: 400;\">, and as a <\/span><b>buffering agent<\/b><span style=\"font-weight: 400;\"> in various chemical processes.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Properties:<\/b><\/span>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Highly <\/span><b>soluble in water<\/b><span style=\"font-weight: 400;\">, making it effective for fertigation.<\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Slightly alkaline<\/b><span style=\"font-weight: 400;\"> in reaction.<\/span><\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">Quickly available nutrients for plants.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Urea<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Urea is a widely used nitrogen fertilizer with<\/span><b> 46% nitrogen (N<\/b><span style=\"font-weight: 400;\">) content, making it the highest nitrogen-concentrated solid fertilizer.<\/span><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Uses of Urea:<\/b><\/span>\n<ul>\n<li aria-level=\"2\"><span style=\"color: #000000;\"><b>Agriculture: <\/b><span style=\"font-weight: 400;\">Used as a <\/span><b>nitrogen source for crops, promoting leaf and vegetative<\/b><span style=\"font-weight: 400;\"> growth. It is applied directly to the soil or used in foliar sprays.<\/span><\/span><\/li>\n<li aria-level=\"2\"><span style=\"color: #000000;\"><b>Industry: <\/b><span style=\"font-weight: 400;\">Used in the production of plastics, adhesives, and resins. It is also a key component in diesel exhaust fluid (DEF) to reduce emissions.\u00a0<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Properties:<\/b><\/span>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Highly <\/span><b>soluble in water.<\/b><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Neutral pH<\/b><span style=\"font-weight: 400;\"> but can lead to<\/span><b> soil acidification over time<\/b><span style=\"font-weight: 400;\">.<\/span><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Volatilization risk<\/b><span style=\"font-weight: 400;\">: Urea can convert to ammonia gas if not properly incorporated into the soil.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<h2><span style=\"font-size: 18pt;\"><b>Key Recommendations of the Parliamentary Committee<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Additional Funds for Subsidy Schemes<\/b><span style=\"font-weight: 400;\">:\u00a0 The Fertilizers Ministry projected <\/span><b>\u20b91,84,704.63 crore for 2025-26<\/b><span style=\"font-weight: 400;\">, but the <\/span><b>Finance Ministry reduced it by 7.38% to \u20b91,71,082.44 crore.\u00a0\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cuts <\/span><b>affect both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme.\u00a0\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The panel urged the ministry to request more funds at the revised estimate stage to avoid disruptions.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expand Domestic Production of Nano Fertilizers<\/b><span style=\"font-weight: 400;\">: The committee recommended <\/span><b>faster establishment of nano urea production<\/b><span style=\"font-weight: 400;\"> units to meet demand.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secure Mining Leases for Self-Sufficiency<\/b><span style=\"font-weight: 400;\">: The panel suggested long-term mining agreements to reduce import dependency.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fertilizer Crisis Early Warning System:<\/b><span style=\"font-weight: 400;\"> To address supply disruptions, create a Fertilizer Crisis Early Warning System (FCEWS) for shortage prediction and strategic reserve management.\u00a0<\/span><\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.698%;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle; width: 100%;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Nutrient Based Subsidy (NBS)<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Under\u00a0 Nutrient Based Subsidy (NBS), the government fixed a <\/span><b>per-kg subsidy<\/b><span style=\"font-weight: 400;\"> for each fertilizer nutrient: <\/span><b>Nitrogen (N), phosphorus (P), potash (K) and sulfur (S).<\/b><\/span><\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">NBS policy intends to increase the consumption of P&#038;K fertilizers so that optimum balance <\/span><b>(N:P:K= 4:2:1) of NPK fertilization is achieved.<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Nodal Ministry: Ministry of Chemicals and Fertilizers\u00a0<\/b><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The panel emphasized the importance of urea in food production and urged the continuation of subsidy schemes. 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