Boosting production

Source– The post is based on the article “Boosting production” published in The Business Standard on 16th November 2022.

Syllabus: GS3- Industrial policy

Relevance: Fertiliser sector

News- The article explains the situation of the fertiliser sector in India. It tells about the issues related to fertiliser subsidy.

What is the current situation of fertiliser production in our country?

Government has recently commissioned a fertiliser plant at Ramagundam in Telangana last week.

This is one of the five public-sector fertiliser plants that were taken up for revival under the New Urea Policy of 2015. These units would add over 6 million tonnes to the country’s existing urea production capacity.

The new urea policy has helped enhance the energy-use efficiency of the existing gas-based urea units. It has led to an increase in their net output.

India is close to achieving self-sufficiency in urea production.

What are the issues related to fertiliser subsidy?

Government’s fertiliser subsidy bill may still remain high. It is because of the unabated imports of phosphatic and potassic fertilisers and heavy discounts on their sale.

A bag of DAP, priced in the international market at around Rs 4,000, is being supplied to farmers at only around Rs 2,500.

What are some facts about nano urea?

It is developed and patented by Indian Farmers Fertiliser Cooperative (IFFCO). It contains nitrogen nutrient in a size that is much thinner than that in normal granular urea.

Government is lending full support for production and promotion of this product.

IFFCO has licensed the technology for the production of this liquid fertiliser to a couple of public-sector urea producers free of cost. The purpose is to make this critical plant nutrient available to farmers at cheaper rates.

One 500 ml bottle of nano urea is deemed equivalent to a bag of normal urea.