GS Paper 3
Syllabus: Agriculture
Source: The Hindu
Context: The Standing Committee of Parliament on Chemicals and Fertilizers, led by Shashi Tharoor, has presented two reports highlighting concerns about fertilizer availability, subsidies, and GST rates on fertilizer components.
Concerns and Recommendations by the Committee:
| Concerns | Details | Recommendations |
| Reliance on Imported Fertilizers | India heavily depends on imported fertilizers like urea, DAP, MOP, NPK, etc. (30% of urea, 100% muriate of potash, 60% Diammonium phosphate imported) | Increase local fertilizers production (especially urea) by facilitating investments for public, cooperative and private fertilizers manufacturers. |
| Fertilizer Availability | Irregularities in fertilizers sale such as diversion, black marketing, hoarding, sub-standard quality etc. | Creating a separate tariff code for urea used for non-agricultural purposes. Develop a central monitoring mechanism to conduct random checks |
| Review Nutrient-Based Subsidy (NBS) Policy | Current NBS policy excludes urea from subsidies. This creates price control for urea, unlike other fertilizers. | Review NBS policy to remove disincentives for using other fertilizers and promote balanced use. |
| Discrepancy in GST Rates | GST rate for fertilizers: 5%; GST rate for raw materials (sulphuric acid, ammonia): 18%; This highlights the inconsistency in GST rates between fertilizers and their raw materials. | Lower GST on raw materials to support fertilizer manufacturing and farmers. |
| International Price Fluctuations and Purchase Reforms | Implement purchase policy reforms. Advocated for long-term import contracts for fertilizers and raw materials. | |
What are Fertilisers?
A fertiliser is a natural or artificial substance containing chemical elements (such as Nitrogen (N), Phosphorus (P) and Potassium (K)) that improve the growth and productiveness of plants.
There are 3 basic fertilisers in India – Urea, DAP and Muriate of Potash (MOP)
In India, urea is the most produced, imported, consumed and physically regulated fertiliser of all. It is subsidised only for agricultural uses. The MRPs of non-urea fertilisers are decontrolled or fixed by the companies. All Non-Urea based fertilisers (such as DAP and MOP) are regulated under the Nutrient Based Subsidy (NBS) Scheme.
Measures taken to Promote Balanced Fertilisation
- Introduction of the Nutrient-Based Subsidy (NBS) regime in April 2010
- In 2015, the Indian government mandated neem-coating of all urea
- Indian Farmers Fertiliser Cooperative Limited (IFFCO) launched liquid ‘Nano Urea’ in 2021.
- First Liquid Nano Urea (LNU) plant was inaugurated at Kalol, Gujarat.
- ‘One Nation One Fertiliser’
Prelims Links:
With reference to chemical fertilizers in India, consider the following statements: ( UPSC 2020)
- At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
- Ammonia, which is an input of urea, is produced from natural gas.
- Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Ans: B
Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture? (UPSC 2016)
(a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms.
(b) Neem coating slows down the rate of dissolution of urea in the soil.
(c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields.
(d) It is a combination of a weedicide and a fertilizer for particular crops.
Ans: B
