Context: The Parliamentary Standing Committee on Chemicals and Fertilizers has warned the Ministry of Fertilizers against under-funding nutrient subsidy schemes.
About Under-funding of Nutrient Subsidy Schemes:
- The Department of Fertilizers projected an outlay of ₹1,84,704.63 crore for 2025-26.
- The Ministry of Finance reduced this by 7.38% to ₹1,71,082.44 crore.
- Reduction affected both the Nutrient-Based Subsidy (NBS) and Urea Subsidy Schemes.
Panel Observations:
- Underutilisation of funds during 2024-25:
- Indigenous phosphorus & potassium fertilizers: 20% underutilized.
- Imported phosphorus & potassium fertilizers: 12% underutilized.
- Indigenous urea: 14.76% underutilized.
- Market Development Assistance (MDA): 59.57% underutilized.
- Lack of mining lease agreements for raw material security.
- Self-sufficiency in fertilizers is difficult without physical investments and policy reforms.
Recommendations by the Panel:
- The Ministry should seek additional funds at the revised estimates stage.
- Ensure full and planned utilization of allocated funds.
- Expand production capacity of nano urea and nano diammonium phosphate (DAP).
- Facilitate timely establishment of new production units.
- Explore international mining lease agreements for raw material security.
Relevance in UPSC Exam Syllabus:
- GS Paper 3 (Agriculture):
- Fertilizer policy, input subsidies, and their impact on agricultural productivity.
- Sustainable farming and role of nano fertilizers.
- GS Paper 2 (Governance):
- Parliamentary oversight and recommendations by standing committees.
- Economic Development:
- Public expenditure efficiency and budget planning.
