Reforming India's Fertilizer Policy

Why in News?

Global geopolitical tensions highlighted India's dependence on fertilizer imports.

Key Facts

• 70% import dependence
• Heavy subsidy burden
• Low Nutrient Use Efficiency (NUE)

Current Subsidy System

Urea

• Government controls price.

P&K Fertilizers

• Nutrient Based Subsidy (NBS).

Major Problems

Economic

• High subsidy burden

Environmental

• Soil degradation
• Nitrous Oxide emissions
• Water pollution

Governance

• Smuggling
• Diversion to industries

Suggested Reforms

• Direct Cash Transfer
• Land-based fertilizer allocation
• Promote Liquid Urea
• Increase use of Triple Super Phosphate (TSP)

Important Concepts

NUE

Traditional Urea:

• 35–40%

Liquid Urea:

• Around 90%

Why TSP?

Reduces unnecessary nitrogen use.

UPSC Keywords

• Nutrient Based Subsidy
• Direct Benefit Transfer
• Fertilizer Sovereignty
• Nutrient Use Efficiency

One-Page UPSC Revision