Need-based fertiliser subsidy in the works
new delhi, April 17 -- The government is likely to switch to a system of providing subsidized fertilisers based how much farmers actually need, hoping to roll it out in at least two to three states in the summer-planting cycle, part of a countrywide plan to curb overuse and save costs, according to people familiar with the matter.
Imbalanced use of cheap crop nutrients, a long-standing problem, ruins soil and crop quality, impacts the environment and bloats government spending. India relies on imports to meet its domestic demand for fertilisers and the Strait of Hormuz crisis has choked off supplies of raw materials and gas, a critical feedstock for the agro-chemical industry.
An interministerial meeting last week, overseen by the Cabinet secretary, decided to rationalise fertiliser distribution by linking it to farm data contained in a state-created national digital database, known as Agristack, one of the persons said.
Andhra Pradesh, Telangana and Haryana could be the first states where the new system would be rolled out. The agriculture ministry is working on the rollout, which will provide cheap fertilisers to cultivators based on how much land they have and what they grow.
The idea is to optimise usage also based on soil quality, a second person said. For instance, farmers tend to apply urea, the cheapest chemical, even in soils that are rich in nitrogen, which is a waste, he said.
The Agristack platform has now made targeted supplies possible and pilots for optimised use linked to the biometric details known as Aadhaar has already been done in some states by the fertiliser ministry. The trials showed rational use can cut fertiliser consumption by up to 15-17% and save nearly Rs.500 crore in a typical foodbowl state.
The goal is to prevent misuse, overuse or diversion of subsidized agro-chemicals toward illegal non-farm industrial use, according to the first official....
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