Site icon Smart Indian Agriculture

Reducing Fertiliser Use to Cut Down on Imports and Trim the Subsidy Bill

Bag of ammonium phosphate sulphate of Gujarat State Fertilisers and Chemical. Photo courtersy of the company.

India needs to pare its fertiliser import bill with a bouquet of measures including getting farmers to apply less of it, promoting the use of liquid and nano fertilisers, incorporating chemicals in urea to reduce wastage of the nutrient nitrogen, and making more low-analysis fertilisers available instead of high-analysis ones.

R P Prasad, formerly of Coromandel International and Nagarjuna Fertilisers and Harish Damodaran, National Rural Affairs Editor, Indian Express, have made the following set of recommendations in their article in the Indian Express on 24 June:

India imported nearly 19 million tonnes (mt) of fertiliser in 2021-22 valued at $12.77 billion.  It also produced nearly 42.95 mt of fertiliser. The cost of imported raw materials and intermediates— natural gas, phosphoric acid, rock phosphate, ammonia, sulphur and sulphuric acid— was $11.5 billion. All told, India spent $24.3 billion on imported fertiliser and inputs in 2021-22.

Fertiliser is sold much below global prices. The subsidy was Rs 1.54 trillion (lakh crore) or $20.6 billion in 2021-22. It is expected to be Rs 2.5 trillion or $32 billion in this financial year. This is fiscally straining.

The authors of the article suggest the following measures to reduce fertiliser use without affecting crop output:

No plan to cap or reduce the use of high-analysis fertilisers can succeed if farmers are not educated about the alternatives to DAP and NPK complexes. Only then can the fertiliser application rate decline from 2.5 bags per acre to 1.5 bags. Agriculture departments and universities will have to recalibrate their fertiliser recommendations, the authors say, and these must be given wide publicity.

Link to the article.

Exit mobile version