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Urea subsidy scheme

Ques) Identify the correct statement/s about urea subsidy scheme in india.

  1. It is governed by ministry of agriculture.
  2. Presently it has been extended till 2020.

a)   1 only   b) 2 only
c) 1 and  d) Neither 1 nor 2

  • The Cabinet Committee on Economic Affairs has approved to continue Urea Subsidy Scheme from 2017 up to 2020 at a total estimated cost of Rs. 1,64,935 crore and implementation of Direct Benefit Transfer (DBT) for disbursement of fertilizer subsidy.
  • The continuation of the urea subsidy scheme will ensure that adequate quantity of urea is made available to the farmers at statutory controlled price.

What is urea?

. It is an organic compound with chemical formula C O(N H2)2.

What is the need for urea?

 

Macro nutrients like N,P,K

  • Cotton, Maize and Wheat are very sensitive to insufficient ‘N’ and very responsive to nitrogen fertilization
  • While(N) is important for overall growth, (K) is important for good yields.
  • Rice – Nutrient requirements for a yield goal of 9.8 ton/ha: N – 217 kg/ha, P – 68 kg/ha, K – 256 kg/ha.
  • Potato – Nutrient requirements for a yield goal of 40 ton/ha: N – 170 kg/ha, P – 22 kg/ha, K – 220 kg/ha.

WHY UREA SUBSIDY IS GIVEN?

1.As much as 67 percent of India’s farmland is held by the marginal farmers with holdings below one hectare, against less than 1 percent in large holdings of 10 hectares and above, the latest Agriculture Census show.

  • Urea– Urea is made available to farmers at a statutorily controlled price of Rs 5,360 per tonne.
  • The difference between the delivered cost of the fertiliser at farm gate and maximum retail price is given as subsidy to manufacturers.
  • The Indian National Food Security Act. 2013 aims to provide subsidized foodgrains to approximately two thirds of India’s 1.2 billion people. To achieve this objective, agricultural productivity needs to be further increased which is possible only with balanced use of chemical fertilizers and bringing more cultivable land under fertilizer use.
  • The balanced use of chemical fertilizer is important not only for increasing the agricultural productivity but also for sustaining soil fertility. The consumption of NPK ratio has also changed over a period of time. During 2008-09, the consumption of NPK ratio was 4.6:2.0:01 which has changed to 8.2:3.2:01 during 2012-13.

NITI AAYOG OPINION

  • IDEAL mix of NPK is 4:2:1.
  • Level of fertiliser use depends on types of soil, crops and availability of water.
  • Use of soil health card.
  • As urea is heavily subsidized in india—tendency to over use it.
  • National institute of agriculture economics and policy—about 2/3rd of 18 states—no optimum use of fertiliser.

Impact

WAY FORWARD

 

  • STATE FORWARD.(NITI AAYOG REPORT)
  • Digital soil test and recommendation kit developed by PUSA.

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