The Fertilizers Committee Warns About Underfunding of the Nutrient Subsidy Scheme (NBS)

The Committee observed that the Ministry of Finance had reduced by roughly 7% the Department of Fertilizers' projected 2025–2026 expenditure of ~₹1.84 lakh crore for its various initiatives. The Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme have both been scaled back.

Other Significant Results in the Report

Improving Fertilizer Security: Geopolitical upheavals and price volatility have resulted in severe shortages of fertilizer. For example, DAP. Mining and Technological Developments: no attempts are made to obtain mining permits for essential raw materials like phosphates and potash.

Revision of nitrogen-phosphorus-potassium-sulfur (NPKS) fertilizer grade: Because soil-specific fertilizer grades are not always available, farmers must pay additional costs.

Direct Benefit Transfer (DBT): The DBT system is susceptible to misuse since it is impossible to verify the legitimacy of recipients.

Nano fertilizers like nano urea and nano DAP have the potential to boost agricultural yields, but further research is necessary.

Suggestions

Balanced delivery and supply compliance: Prioritize the delivery of fertilizer in a balanced manner based on the needs of the soil, and use penalties to enforce supply compliance. Fertilizer Crisis Early Warning System: To predict shortages and maintain strategic stockpiles, create FCEWS.

By connecting Aadhaar verification with the Farmer's Registry, you can enhance targeting and apply dynamic purchase caps based on landholding size. Promote the use of Urea Gold to improve soil health, boost agricultural productivity, and reduce reliance on conventional urea

Nutrient-Based Subsidy Policy (NBS)

Per nutrient, the rates of subsidies for sulfur (S), potassium (K), phosphate (P), and nitrogen (N) are set and periodically reviewed either annually or every two years.

Coverage: Includes 28 P&K fertilizer grades, such as Di-Ammonium Phosphate (DAP), Mono Ammonium Phosphate (MAP), and Muriate of Potash (MOP).

MRP Flexibility: The affordability of the MRPs set by manufacturers is confirmed by the government.

Additional Subsidies: Various subsidies for micronutrients like boron and zinc.

Making sure farmers can afford urea, which is necessary for food security, is the aim of the Urea Subsidy Scheme.