Fertilizers committee warns against under-funding of nutrient subsidy schemes

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Representative image

Representative picture
| Photo Credit: The Hindu

The parliamentary Standing Committee on Chemicals and Fertilizers, headed by Trinamool Congress MP Kirti Azad, has urged the Union Fertilizers Ministry to hunt further funds for the sector on the revised estimate stage to make sure that subsidy schemes for farmers aren’t negatively affected.

In a report on Demands for Grants tabled in Parliament lately, the panel additionally really useful to the Centre the expantion of manufacturing capability of nano urea and nano diammonium phosphate (DAP) by making certain the well timed institution of manufacturing items. Additionally, it known as for a method to popularise these nano fertilizers amongst farmers.

The Committee famous that whereas the Centre facilitates agreements between Indian fertilizer firms and their counterparts in resource-rich international locations to make sure the supply of uncooked supplies, intermediates, and completed fertilizers, no efforts have been made to safe mining lease agreements for extraction, exploration, refining, or manufacturing. It urged the Centre to enter into such agreements to bolster home provide. “Without introducing physical measures and pumping in Government, Public and Private investment, the goal of achieving self-sufficiency in the field of fertilizers is difficult to achieve,” the report said.

The panel noticed that whereas the Department of Fertilizers had projected an outlay of ₹ 1,84,704.63 crore for its numerous schemes in 2025-26, the Ministry of Finance had lowered this allocation by 7.38% to ₹ 1,71,082.44 crore. “The reduction has been made in both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme of the Department,” the report stated, including that this lower would have an effect on the sleek implementation of subsidy schemes.

The Committee additionally highlighted underutilisation of funds throughout numerous classes throughout 2024-25, together with 20% below indigenous phosphorus and potassium (PK) fertilizers, 12% below imported PK, 14.76% below indigenous urea, and 59.57% below Market Development Assistance (MDA). It really useful that the Centre ensures full utilisation of allocations in a deliberate method, with continuity below numerous heads of Ministry. Given the significance of urea in food-grain manufacturing, the panel burdened that the Urea Subsidy Scheme should proceed.

Citing a rise in crop yield when combining nano urea with typical urea, the panel famous that the very best yield enchancment was noticed in peas (6.14% to 14.82%) and the bottom in sugarcane (1.65% to 4%). “Field trials on Nano DAP have revealed that its use for seed treatment and foliar application could potentially reduce the requirement for conventional granular DAP. The Committee, therefore, recommends that the Department of Fertilizers should expand Nano Urea and Nano DAP production capacities by ensuring the timely establishment of the units envisaged in the future,” the report stated.

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