Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes


A parliamentary committee on fertilizers has raised concerns over the under-funding of nutrient subsidy schemes, warning that insufficient financial support could have a severe impact on farmers and agricultural productivity. The committee emphasized the need for adequate allocation to ensure the availability of affordable fertilizers, particularly for small and marginal farmers.

Concerns Over Budget Allocations

The committee noted that the fertilizer subsidy allocation in the Union Budget 2024-25 has been reduced compared to previous years. Given the increasing cost of raw materials and global price fluctuations, the committee warned that under-funding could lead to shortages and higher prices for farmers, ultimately affecting crop yields and food security.

Key concerns raised by the committee include:

  • Reduced budget allocation for fertilizer subsidies, which could result in price hikes for essential nutrients like urea, DAP, and potash.

  • Delays in subsidy disbursement, which may discourage fertilizer manufacturers from ensuring an uninterrupted supply.

  • Impact on soil health, as farmers may reduce the use of balanced fertilizers if prices rise, leading to long-term damage to agricultural productivity.

Recommendations by the Committee

To address these concerns, the committee has urged the government to:

  1. Increase Budgetary Allocation: Ensure that subsidy funds match the rising cost of fertilizers and raw materials to prevent any supply disruptions.

  2. Timely Release of Subsidies: Implement a mechanism for the swift disbursement of subsidy payments to fertilizer companies, ensuring a steady supply chain.

  3. Promote Alternative Nutrient Sources: Encourage the use of bio-fertilizers, organic manure, and nano fertilizers to reduce dependence on chemical fertilizers.

  4. Monitor Distribution and Pricing: Strengthen monitoring systems to prevent hoarding and ensure that farmers receive fertilizers at subsidized rates.

Future Outlook

With global fertilizer prices remaining volatile, the committee stressed the urgent need for a sustainable and well-funded subsidy program to support Indian farmers. The government is expected to review the recommendations and take necessary steps to prevent disruptions in fertilizer supply and maintain agricultural productivity.