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Soil health is a crucial determinant of agricultural productivity, environmental sustainability, and food security. On December 5, 2024, the world observed the 10th World Soil Day under the theme “Caring for Soils – Measure, Monitor, and Manage“. It emphasizes the importance of soil conservation and proper management to ensure long-term agricultural productivity.
In India, where agriculture remains the backbone of the economy, soil degradation has emerged as a significant challenge, driven by nutrient deficiencies and the unsustainable use of fertilisers. This article explores the state of Indian soil health, the role of the fertiliser sector, its associated challenges, and the policy reforms required to address these critical issues. Fertiliser Sector Issues in India.
What is the current state of nutrient deficiency in Indian soil?
According to recent reports Indian soils suffer from acute deficiencies in essential nutrients which are listed below. These nutrient deficiencies severely affect soil fertility and crop yields.
| Nitrogen Deficiency | Less than 5% of Indian soils have adequate nitrogen levels, essential for healthy plant growth. |
| Phosphate Deficiency | Only 40% of soils are sufficient in phosphate, an important nutrient for root development and flowering. |
| Potash Deficiency | 32% of soils are deficient in potash, which is crucial for plant disease resistance and overall growth. |
| Organic Carbon Deficiency | Just 20% of soils have adequate organic carbon, which is necessary for improving soil structure and water retention. |
| Micronutrient Deficiencies | Soils in India also suffer from deficiencies of micronutrients such as zinc, iron, sulphur, and boron, which are critical for optimal plant growth. |
What is the role of fertiliser sector in promoting soil health?
1. Ensure the availability of essential soil nutrients– The fertiliser sector has played a crucial role in sustaining India’s agricultural output by ensuring the timely availability of essential nutrients such as nitrogen (N), phosphate (P), and potash (K) through both domestic production and imports.
2. Driving India’s Agricultural Dominance– The efforts of the fertiliser industry in supplying critical nutrients have helped India maintain its status as a global agricultural powerhouse. Between 2020-21 and 2022-23, the country exported 85 million tonnes of cereals while providing near-free grain to over 813 million people during the pandemic.
3. Sustainability Initiatives- The fertiliser sector encourages the use of advanced products like slow-release fertilisers and those fortified with micronutrients to enhance efficiency and reduce environmental impact.
4. Education and Awareness- The sector works closely with farmers to educate them about proper fertiliser application techniques, soil testing (Soil Health Card), and nutrient management for maintaining soil vitality.
What are the key challenges in the Indian fertiliser Sector?
The Indian fertiliser sector faces several key challenges that impede the effective and efficient use of fertilisers, undermining both soil health and agricultural productivity.
1. Imbalanced Fertiliser Use- A major issue in Indian agriculture is the overuse of nitrogen (N) fertilisers, especially urea, while other essential nutrients like phosphorus (P) and potassium (K) are underused. For example, in Punjab, nitrogen use is 61% higher than recommended, but under uses potash by 89% and phosphate by 8%. This imbalance results in green fields but lower crop yields, as plants need all three nutrients for optimal growth.
2. Low Nutrient Use Efficiency (NUE)- The efficiency of fertiliser use in India is very low, with only 35-40% of fertilisers being absorbed by crops. The rest is wasted or lost to the environment, such as nitrogen escaping as nitrous oxide, a harmful greenhouse gas. This inefficiency leads to higher costs for farmers and environmental harm.
3. Distortions from Fertiliser Subsidies- India’s fertiliser subsidy system, especially for urea, has caused an imbalance in nutrient use. Urea is heavily subsidised, making it cheaper than other fertilisers like DAP and MOP, leading to overuse of nitrogen. This has resulted in excessive nitrogen use and insufficient application of other key nutrients, negatively impacting soil health.
4. Fertiliser Diversion and Smuggling- A significant portion (20-25%) of subsidised urea is diverted for non-agricultural uses or smuggled out of the country. This deprives farmers of necessary fertilisers and strains government finances.
5. Neglect of Micronutrients- Micronutrients like zinc, boron, and iron are often overlooked, despite their crucial role in plant growth. Their deficiency is widespread and contributes to the decline in soil health and agricultural productivity.
What is fertiliser Subsidy and the related Schemes implemented in India?
Fertiliser Subsidy- The government provides a subsidy to fertiliser producers so farmers can buy fertilisers at lower prices. The subsidy covers the difference between the cost of making or importing the fertiliser and the price farmers pay. Subsidy on 3 basic fertilisers in India- Urea, DAP and Muriate of Potash (MOP) is discussed below:
a. Subsidy on Urea: Urea is the most widely produced and used fertiliser in India. It is subsidised only for agricultural use. The government pays a subsidy based on the cost of production at each plant, and urea is sold at a fixed Maximum Retail Price (MRP).The subsidized MRP of 45 kg bag of urea is Rs.242 per bag (exclusive of charges towards neem coating and taxes applicable).
b. Subsidy on Non-Urea Fertilisers: Non-urea fertilisers, such as DAP and MOP, are generally sold at market prices, but the government has recently regulated them due to global price increases (especially after the Russia-Ukraine war). These fertilisers are covered under the Nutrient-Based Subsidy (NBS) Scheme. The MoP is being sold at Rs 1,500-1,600 per bag, while the price of DAP is Rs 1,350 per bag.
Fertiliser subsidy schemes
| Urea Subsidy Scheme | a. Under the Urea Subsidy Scheme, urea is sold at a statutorily notified uniform MRP (Maximum Retail Price). Farmers pay a subsidised price of ₹242 per 45 kg bag of urea, significantly lower than the market price. b. The difference between the cost of production/importation and the retail price is paid to the urea manufacturer/importer by the government as a subsidy |
| Nutrient-Based Subsidy (NBS) Scheme | a. The NBS scheme was introduced in 2010 to address the nutrient imbalance in Indian agriculture. b. Under this scheme, fertilisers are provided at subsidised rates based on the nutrients they contain, namely nitrogen, phosphate, potash, and sulphur. c. Fertilisers fortified with secondary and micronutrients are also given additional subsidies. However, urea is excluded from the NBS scheme. |
What are the challenges with the Subsidy System?
The fertiliser subsidy system has created several challenges:
1. Nutrient Imbalance: By focusing heavily on urea, the subsidy system has encouraged an imbalanced use of fertilisers, with nitrogen being overused and phosphate and potash underused. This imbalance harms soil health and reduces agricultural productivity in the long run.
2. Financial Strain on the Government: Fertiliser subsidies are a significant financial burden on the government, amounting to ₹1.88 lakh crore, or nearly 4% of the Union budget. This high expenditure diverts resources away from other critical sectors, such as health and education.
3. Environmental Harm: The inefficient use of fertilisers has led to pollution, including the release of greenhouse gases and contamination of water bodies. The low NUE further exacerbates these environmental impacts.
4. Diversion of Subsidised Fertilisers: The diversion of urea for non-agricultural uses and illegal exports leads to shortages for farmers and additional costs for the government.
Solutions and Way Forward
1. Rationalising Subsidies- The government should bring urea under the Nutrient-Based Subsidy (NBS) scheme to balance the prices of nitrogen, phosphate, and potash. This will encourage balanced fertiliser use and reduce reliance on urea.
2. Deregulating Fertiliser Prices- Allowing market forces to set fertiliser prices can remove distortions caused by price controls. Farmers should receive direct income support, such as digital coupons or cash transfers, to purchase fertilisers based on their needs.
3. Promoting Micronutrient Use- To address micronutrient deficiencies, the government should promote fertilisers enriched with micronutrients. Encouraging balanced fertiliser use, including micronutrients, is crucial for better soil health and crop yields.
4. Improving Nutrient Use Efficiency (NUE)- Improving NUE is essential, which can be achieved through precision farming, better soil testing , and using technology to apply fertilisers more efficiently.
| Read more- Indian Express UPSC Syllabus- GS 3- Agriculture |
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