Cost of Fertiliser Imbalance in India

Source: The post “Cost of Fertiliser Imbalance in India” has been created based on “Cost of Fertiliser Imbalance in India” published in “Financial Express” on 26 October 2026. Cost of Fertiliser Imbalance in India.

UPSC Syllabus:  GS 3: Indian Economy

Context: The Union Agriculture Minister, Shivraj Singh Chouhan, launched the Khet Bachao Abhiyan on October 22, 2026, in Karnal, Haryana, to promote balanced fertiliser use during the rabi season. However, the existing fertiliser pricing and subsidy policies continue to encourage excessive nitrogen use and inadequate application of phosphorus and potassium.

Present Status of Fertiliser Imbalance

1. Nitrogen use has increased from 7% below the recommended level in 2009–10 to 6% above it in 2024–25.
2. The phosphorus deficit has narrowed from 29% to 22%, while the potassium deficit has widened from 48% to 72%.
3. Farmers apply only 9 kg of potash per hectare against the recommended requirement of 32 kg.
4. The national NPK ratio stands at 10.5:4.1:1, compared with the recommended ratio of 2.8:1.5:1.
5. Eleven of the 20 major states overuse nitrogen, with Jharkhand and Punjab recording excessive use of 72% and 65%, respectively. Every state underuses potash.

Major Causes

• Distorted pricing policy: The Nutrient-Based Subsidy (NBS) scheme, introduced in 2010, allowed phosphatic and potassic fertiliser prices to fluctuate with global markets, while urea remained under price control.
• Rising relative prices: Between 2010–11 and 2024–25, DAP prices nearly trebled to ₹54/kg and MOP prices rose six-fold to ₹52/kg, whereas the price of nitrogen in urea increased by only 1%.
• Visible benefits of urea: Nitrogen makes crops appear greener, while the effects of potassium deficiency are less immediately visible.
• Distorted cropping incentives: Minimum Support Price (MSP)-based procurement and subsidised electricity encourage the rice-wheat cropping cycle, particularly in Punjab and Haryana.

Consequences of Imbalanced Fertiliser Use

1. Soil degradation: Of the 96 lakh soil samples tested under the Soil Health Card scheme in 2025–26, 72% were low in nitrogen, 52% in organic carbon, 42% in boron and 37% in zinc.
2. Environmental pollution: Crops absorb only 30–40% of applied nitrogen. Some of the remainder escapes as nitrous oxide, a greenhouse gas 273 times as potent as carbon dioxide, while some leaches into groundwater.
3. Public health risks: Nitrate contamination above safe limits has been found in parts of 502 districts, posing risks such as blue baby syndrome in infants and chronic illnesses in adults.
4. Declining crop resilience: Potassium deficiency reduces drought and disease resistance and grain quality, while phosphorus deficiency delays flowering.
5. Hidden hunger: Micronutrient-deficient soils produce nutrient-poor grains, contributing to micronutrient deficiencies among people.
6. Fiscal burden and regional inequality: Against a fertiliser subsidy budget of ₹1.71 lakh crore for 2026–27, the disruption in the Strait of Hormuz could raise the bill to ₹2.5 — 3 lakh crore. Punjab receives approximately ₹25,700 per hectare in nitrogen subsidy, nearly ten times Kerala’s allocation.

Way Forward

1. Reform fertiliser subsidies: Introduce a nutrient-neutral, per-hectare Direct Benefit Transfer (DBT) system. Alternatively, bring urea under NBS and reduce DAP and MOP prices in a calibrated manner, keeping the overall subsidy budget around ₹2 lakh crore.
2. Strengthen PM-PRANAM: Reform and implement the scheme to reward states for reducing fertiliser use and promoting balanced nutrient application.
3. Promote efficient technologies: Reinvest subsidy savings in drip irrigation, fertigation, customised and coated fertilisers, triple super phosphate as an alternative to DAP, biofertilisers, nano fertilisers and nitrogen-efficient gene-edited seeds.
4. Adopt the 4Rs: Encourage the right source, right rate, right time and right place of fertiliser application through plot-level recommendations based on soil tests.
5. Diversify cropping patterns: Rotate cereals with pulses to reduce the nitrogen requirement of the subsequent crop by 20–30%.
6. Address structural distortions: Reform electricity pricing and procurement policies in Punjab and Haryana and improve the identification of tenant farmers through AgriStack and digital land records.

Conclusion: India must shift its focus from the quantity of fertilisers consumed to the balance of nutrients applied. Rationalising subsidies, improving soil health and promoting sustainable farming practices are essential to protect agricultural productivity, public health, fiscal stability and long-term food security.

Question: Imbalanced fertiliser use in India has emerged as a serious challenge to soil health, environmental sustainability and agricultural productivity. Examine the causes and consequences of this imbalance and suggest suitable measures to address it.

Source: Financial Express