Aim of the Nutrient Based Scheme
- The plan seeks to guarantee that a sufficient supply of P&K is available to farmers at legally regulated costs to maintain agricultural development and ensure balanced nutrient application to the soil.
- Its goals include guaranteeing balanced fertilizer usage, increasing agricultural production, fostering the expansion of the domestic fertilizer sector, and lowering the subsidy burden.
Benefits and Aim of Urea Subsidy
A farmer gets a fertilizer subsidy if they buy the product at a price lower than the MRP (Maximum Retail Price), which means that the price is lower than the average demand-and-supply rate or the typical cost of production and import. Even though the farmer is the one who eventually benefits, the fertilizer subsidy is given to the corporation that makes fertilizer.
A sharp increase in the global prices of urea, di-ammonium phosphate (DAP), and muriate of potash (MoP) in the last year may cause India’s fertilizer subsidy costs to reach Rs 2 trillion in 2022-23, according to a statement made by an official in the fertilizer ministry.
Compared to a smaller range of about ‘70,000-80,000 crore in the preceding few years, the annual budget expenditure on fertilizer subsidy will be much more than the mark of Rs 1 trillion in 2022-23. This will be the third year in a row that this will be the case.