Urea subsidy scheme

Saurabh Pandey
UPSC Faculty
Ex-Vision IAS faculty
• 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.

3. a) 1 only b) 2 only
4. 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 While(N) is

Wheat are very important for
sensitive to insufficient overall growth, (K)
'N' and very responsive is important for
to nitrogen fertilization. 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

•Small farmers
Farmers •Overuse-money
spend

Soil •Loss of soil fertility

•Deterioration of soil
health nutrients.
 •Increase in fiscal burden
Economic
•About 1.6 lac crores
impact

•reduction
Crop
producitivity
 •Biological
Ecology magnification
•Loss of habitats.

•Urea content in milk.

Health
 WAY FORWARD
Government
Farmer level
level

Soil health card,

Rational use of
paramparagat
fertilizer.
krishi vikas yojan

Panchayats to Multiple
empowered cropping.
• STATE FORWARD.(NITI AAYOG
REPORT)

• Digital soil test and recommendation

kit developed by PUSA.
• Ques- Providing urea subsidy will not only have economic
impact but also ecological impact. Examine.