Mains Marathon 2024

Approach Introduce the role of subsidies in the agricultural sector. Highlight their impacts in influencing cropping patterns, crop diversity, and farmers' economic conditions. Propose strategies for implementing farmer-friendly and ecologically sustainable fertilizer subsidies in India. Conclude Suitably.

Introduction

A fertiliser is a natural or artificial substance containing chemical elements (such as Nitrogen (N), Phosphorus (P) and Potassium (K)) that improve growth and productiveness of plants.The government pays a subsidy to fertiliser producers to allow farmers to buy fertilisers at below-market rates.Fertiliser consumption in India is imbalanced, and Urea accounts for more than 82% of the nitrogenous fertilisers applied to the majority of the crops.

Body

Impact of Subsidies on Cropping Patterns

• Increased Production of Staple Crops: Subsidies on fertilizers and high-yield variety (HYV) seeds have led to increased production of staple crops such as rice and wheat.
  • Subsidies contribute to the overall increase in food production, supporting food security initiatives.
• Soil Degradation:This over-reliance on chemical fertilizers, driven by subsidies, has resulted in environmental challenges, including soil degradation and water pollution, which ultimately contribute to reduced crop yields.
  • The ratio of Nitrogen, Phosphorus, and Potassium (NPK) consumption has shifted from 4:3.2:1 in 2009-10 to 7:2.8:1 in 2019-20

Effect on Crop Diversity

• Reduction in Crop Diversity : In states like Punjab and Haryana, heavy subsidies on rice and wheat have led to the neglect of other crops, such as millets, sorghum, and pulses, reducing the overall diversity of crops grown.
• Monoculture Practices : The predominance of rice and wheat cultivation in the Indo-Gangetic plains has created a monoculture environment that can increase vulnerability to pests, diseases, and changing climatic conditions.

Impact on Farmers' Economic Conditions

• Higher Incomes : The Green Revolution, supported by fertilizer and seed subsidies, significantly boosted wheat and rice production, contributing to higher incomes for farmers in states like Punjab and Haryana.
• Lower Production Costs : Subsidized fertilizers and pesticides lower the overall cost of production, enhancing profit margins for farmers, particularly smallholder farmers.
• Improved Cash Flow : Direct cash subsidies and minimum support prices (MSP) provide farmers with immediate financial relief, improving their cash flow.
• Inequitable Distribution of Benefits : Not all farmers benefit equally from subsidies, leading to income disparities within the agricultural community.
• Reduced Public Investment in Agricultural Diversification : The focus on fertilizer subsidies can detract from investments in research, development, and promotion of sustainable agricultural practices.
  • In FY 2024,the fertiliser subsidy was fixed at Rs 164,000 crore in FY 2024

Strategies for Implementing Farmer-Friendly and Ecologically Sustainable Fertilizer Subsidies :

• Diversified Subsidy Schemes: Promote a wider range of crops (e.g., pulses, millets, oilseeds) to encourage crop diversity.
  • The Department of Agriculture & Farmers Welfare (DAC&FW) has been implementing the Crop Diversification Programme (CDP) since 2013-14, as part of the Rashtriya Krishi Vikas Yojana (RKVY), specifically targeting the Original Green Revolution States- Haryana, Punjab, and Western Uttar Pradesh.
• Promotion of Organic Practices: Implement subsidies for organic fertilizers and sustainable practices to enhance soil health.
  • Under Paramparagat Krishi Vikas Yojana PKVY, Organic farming is promoted through adoption of organic villages by cluster approach and Participatory Guarantee System (PGS) certification.
• Capacity Building Programs: Educate farmers on diverse cropping systems and sustainable practices for informed decision-making.
  • One Nation One Fertilizer (ONOF) scheme aims of this scheme is to standardize fertilizer brands across the country, clear up the confusion of farmers regarding the availability and quality of fertilizers, reduce the cost and increase the availability of fertilizers, and save freight subsidy by minimizing cross-country movement of fertilizers.
• Monitoring and Evaluation: Establish mechanisms to assess subsidy effectiveness, incorporating farmers' feedback for continuous improvement.
  • Using Agri Stack will ensure that subsidised fertilisers are sold to only those identified as farmers or authorised by the farmer, and the quantity of subsidised fertiliser is fixed based on parameters such as land ownership and prominent crops of the district

Conclusion

The Committee on Doubling Farmers' Income (2018) emphasized the necessity of reviewing the fertilizer subsidy scheme to align it with the objective of increasing farmers' incomes. Reforming India's fertilizer policy requires a holistic approach that caters to farmers' diverse needs while promoting sustainability. By implementing targeted subsidies, encouraging organic practices, investing in research, and leveraging technology, India can foster a resilient and productive agricultural sector that benefits both farmers and the environment.