Various Agricultural inputs

1. Seeds

Seeds are crucial for the efficiency of other agricultural inputs like fertilizers. Better quality varieties of seeds enhance agricultural productivity.

Seed Replacement Ratio: It measures the area sown with certified seeds compared to farm-saved seeds. Higher seed replacement rates show better utilization of certified seeds. Only 9.4% of operational holdings use certified seeds. National Seeds Corporation produces nearly 600 varieties of certified seeds.

Statistics

• • India holds a 4% share in the global seed market (2017 data).
  • 100% FDI under automatic route is permitted in seed production.
  • Public Sector Share: Reduced from 42.72% in 2017-18 to 35.54% in 2020-21.
  • Private Sector Share: Increased from 57.28% to 64.46% during the same period.

Government Initiatives

National Mission for Seeds: It was launched in 2012 to ensure availability of high-quality certified seeds at reasonable prices.

Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds: It was launched in 2005-06. It aims to produce high-yielding certified seeds in sufficient quantities.

Present Challenges

• • Lack of awareness about quality seeds.
  • Availability of inappropriate quality seeds.
  • Dominance of private companies charging high prices.
  • Lack of clarity and acceptance of genetically modified (GM) seeds.
  • Untimely and inadequate supply of seeds.
  • Need for amendments in Seeds Act, 1966.

Seeds Act, 1966

Seed certification and ensures availability of quality seeds.

Seeds of food crops, oil crops, cotton, fodder, and vegetative propagating material.

Regulation of import and export of seeds of notified varieties.

2. Fertilisers

These are any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. They are added in places where fertility of the soil is not good to supply the needed plant nutrients. Generally, fertilisers are considered as inorganic compounds.

Types of Nutrients

• • Macro-Nutrients: Nitrogen (N), Phosphorus (P), Potassium (K), Calcium, Magnesium, Sulphur
  • Micro-Nutrients: Copper, Zinc, Iron, Manganese, Boron, Chlorine, Molybdenum, Nickel.

Importance in India

• • Indian soils are generally deficient in N, P, and K.
  • Fertilizer usage is prevalent to address these deficiencies.

Variants of Fertilizers

• • Urea (N): Most produced, consumed, and imported fertiliser.
  • Phosphatic (P): Di-ammonium Phosphate (DAP)
  • Potassic (K): Muriate of Potash (MOP)

India’s fertilizer requirement is around 43.5 million tonnes per year. India is dependent on imports for muriate of potash and imports nearly 5 million tonnes of phosphate rock, 2.5 million tonnes of phosphoric acid and 3 million tonnes of DAP annually.

Government Initiatives

1. Retention Pricing Scheme (RPS) (1977): Subsidies based on the difference between production cost and sale price. This scheme indirectly promoted inefficiencies in production as higher the cost of production, higher was the subsidy amount given.

2. New Pricing Scheme (NPS) (2003): Subsidy based on group averaging of retention prices; reimbursed difference between farm gate price and production cost. Continued as NPS-II (2004-06), NPS-III (2006-14), modified NPS-III (2014-15).

3. Nutrient-Based Subsidy (NBS) (2010): Under this, fertilizers are provided to the farmers at the subsidised rates based on the nutrients (N, P, K & S) contained in these fertilizers. This is available for phosphatic (P) and potassic fertilisers (K). It is not extended to urea. NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N: P: K= 4:2:1) of NPK is achieved.

4. Neem-Coated Urea Policy (2015): Mandatory coating with neem oil to improve soil health, reduce costs, and prevent misuse. Benefits include pest and disease reduction, improved yield, and reduced non-agricultural use.

5. New Urea Policy (NUP) (2015): It aims to maximize indigenous urea production, promote energy efficiency and rationalisation of subsidy burden. The MRP of 45 kg bag of urea is Rs 242 per bag (exclusive of charges towards neem coating and taxes as applicable) while the cost is largely Rs 3,000 per bag.

6. Direct Benefit Transfer (DBT) System (2016): Under this, the subsidy is paid directly in the bank account of the fertiliser company. It ensures transparent subsidy payments. It involves the use of Point-of-Sale (PoS) devices for sale and beneficiary identification. For this e-Urvarak, a dashboard, provides real-time information on fertilizer supply, availability, and requirements.

Why was it introduced?

To prevent diversion of urea for non-agricultural use like use as binder in plywood industy, adulterant as milk, manufacturing of protein feeds for animals.

Present Status and Challenges

• • Illegal exports and rising input prices.
  • Delays in subsidy payments.
  • Urea is not covered under NBS which promotes indiscriminate consumption

Subsidy on fertiliser: Current Status

The Union Government has allocated Rs 1.64 lakh crore for fertiliser subsidy in the year 2024-25, which is more than 40% of the total subsidy bill of Rs 3.8 lakh crore. There is a need to cap fertiliser subsidy for a particular level of consumption, say, 100 bags. The Government can also consider scrapping subsidies on individual fertilisers and pay farmers a flat per-acre cash subsidy that they can use to purchase any fertiliser along with proper soil testing and crop-specific requirements.