Amid war's lengthening shadows, the need to reform fertiliser policy, Pg11

Key Highlights:

• Global conflicts have increased uncertainty in fertilizer supplies, impacting India's food security.
• Urea prices surged by 65% and LNG prices by 63% in 40 days due to war, increasing subsidy burden.
• The government is considering a 10-15% cut in urea supplies to each state to address overuse and diversion.
• Direct Benefit Transfer (DBT) of fertilizer subsidy, combined with PM-KISAN, is proposed to farmers.

Detailed Insights:

• India heavily relies on imports for chemical fertilizers and their feedstocks, with up to 70% import dependence.
• Overuse of urea leads to environmental issues like nitrous oxide emissions and groundwater contamination.
• Liquid urea, with a Nutrient Use Efficiency (NUE) of almost 90% through drip irrigation, is not subsidized, indicating irrational pricing.
• The government is considering quantitative rationing of urea under the Essential Commodities Act to ensure better usage.
• Shifting from DAP to Triple Super Phosphate (TSP) can reduce urea (N) consumption and subsidy bill.
• Combining PM-KISAN funds and fertilizer subsidy for direct transfer can benefit both landowners and tenant farmers.

Key Concepts Involved:

• Nutrient Use Efficiency (NUE): The fraction of applied nutrient that is absorbed and used by the plant.
• Direct Benefit Transfer (DBT): Transferring subsidies directly to beneficiaries' bank accounts.
• Essential Commodities Act: An act to ensure the availability of essential commodities to consumers and protect them from exploitation.