In News
- The recent easing of global prices has boosted fertilizer availability and cut the subsidy bill.
More about the news
- The easing of global fertiliser prices has enabled the following:
- Improvement of overall availability significantly:
- No major shortage of any fertilizer has been reported during the ongoing rabi cropping season.
- Augmented fertiliser availability, coupled with good soil moisture conditions, has helped boost area sown under rabi crops, especially wheat, mustard, maize and masur (red lentil).
- World prices cooling off should translate into a reduction in the Centre’s fertiliser subsidy outgo.
- Improvement of overall availability significantly:
- Worsening of nutrition imbalances:
- The current fiscal has witnessed a worsening of nutrition imbalances. Consumption of both urea and DAP has shot up, with their sales for the year ending March 2023 likely to top 350 lt and 120 lt respectively.
- Consumption pattern: Instead of balanced use of plant nutrients based on soil testing and specific crop requirement, Indian farmers are effectively applying just urea and DAP — both high-analysis fertilisers containing 46 per cent N and P respectively.
Government’s initiatives for promoting balanced use of Urea
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Reasons behind this imbalance
- Underpricing of other fertilizers:
- Government has fixed maximum retail prices of Urea & DAP. It has informally-fixed MRPs for NPKS complexes and muriate of potash (MOP).
- Prices of other fertilizers compared to Urea & DAP are relatively higher. So farmers have little incentive to buy other fertilizers.
- The fact that DAP does not contain K, S or other macro and micro nutrients wouldn’t matter to a majority of farmers.
- For them, choice of fertilisers is primarily a function of prices.
- Subsidisation & political motives:
- Underpricing of urea (a historical phenomenon) and DAP (recent) is a product of subsidy-induced market distortions.
- High government subsidies are behind the low pricing, and high sales, of these two fertilisers.
- The compulsions of electoral politics have clearly trumped concerns over soil nutrient imbalances.
- Supply-side constraints:
- India is facing a tight supply position in fertilisers, especially of phosphatic and potassic nutrients.
- The challenges include securing supply from new sources, costlier raw material, and logistics.
- The pandemic has impacted fertilizer production, import and transportation across the world.
Suggestions & way ahead
- Suggestions:
- To restrict DAP use to rice and wheat.
- All other crops can meet their P requirement through SSP and complexes.
- To raise SSP’s acceptance by permitting sale only in granular, not powdered, form.
- SSP powder is prone to adulteration with gypsum or clay.
- Farmers can be assured of quality through granules, which will also promote slower release of P without drift during application.
- To restrict DAP use to rice and wheat.
- The ultimate aim should be to cap urea, DAP and MOP consumption. India, the expert points out, cannot sustain imports leading to their increasing application. Farmers must, instead, be nudged to use more of low-analysis complex fertilisers and SSP.
Source: TH
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