TOPIC : GS 3 Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices; Public Distribution System – Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security; Technology Missions; Economics of Animal-Rearing.
What is the news?
- Central Government enhanced the subsidy on di-ammonium phosphate fertilizers in order to retain the selling price at the current levels and to reduce burden on the Farmer.
- This came in the backdrop of sharp increase in the price of DAP by IFFCO India’s largest fertilizer producer owing to raise in international prices of Phosphate and Ammonium
How fertilizers are Subsidised in India?
- Fertilizers provide Key nutrients (N, P and K) to the soil. Important fertilizers are Urea (N based), DAP (P based) and MOP (K based)
- With the objective of enhanced agricultural growth, Government of India has been providing subsidized fertilizers to the farmers.
- Over the period Government has devised separate mechanisms for Urea(N) Subsidy and Non urea (P, K) fertilizer subsidy
Subsidy mechanism for Urea:
- Cost-Plus method- Under this method, The MRP of urea is statutorily fixed by the Government of India and the difference between MRP and Cost of production is provided to the manufacturing company as subsidy. Different amounts are given to different manufacturers based on their Cost of production.
Subsidy mechanism for Non-urea (P,K) Fertilizers:
Nutrient based subsidy– The market prices of these fertilizers are deregulated.
Manufacturers are free to decide the market price at which they want to sell and they receive a fixed subsidy from the government based on the amount of nutrient (N, P & K) present in a given amount of fertilizer Based on the proportion of nutrients present in the fertilizers, the per Kg subsidy on DAP and MOP is calculated
DBT in Fertilizers:
- The DBT model in fertilizers is different from the conventional system of DBT being implemented in LPG.
- Under this, farmer would continue to get fertilizer at subsidised price where as the fertilizer companies receive subsidy only after the fertilizers are sold to farmers by the retailers through Point of Sale (PoS) machines linked to the Department of Fertilizers’ e-Urvarak DBT portal through biometric authentication by Aadhaar Card
Issues of Fertilizer Subsidies:
- Imbalanced use of fertilizers resulted in Loss of fertility of soil and pollution of water bodies
- Illegal diversion of Subsidised fertilizers for Industrial use
- Fertilizer subsidies are regressive, Since rich farmers use more fertilizers, they end up getting more subsidy than small and marginal farmers
- Increased subsidy burden on the government. Fertilizer subsidy is one of the important items of revenue expenditure
- Fertilizers subsides are treated as Amber box subsidies and breaching the WTO (AoA) limit of 10%
What are the steps taken By the Government till now?
- Reduced the size of the Urea bag from 50 kg to 45 kg to prevent indiscriminate use
- Soil health card scheme promoted balanced use of N, P and K fertilizers (ideal ratio is 4:2:1)
- Neem coated Urea not only prevented the illegal diversion of urea for Industrial use but also improved nitrogen-use efficiency by slowing the release of nitrogen and thereby reducing the consumption
Way forward:
- De-Canalization of Urea imports at present Urea is imported only by government agencies.
- Allowing private agencies to import the urea will increase competition and reduces the price.
- Introduce Direct cash transfer method of subsidy on the lines of LPG subsidy farmers can purchase the fertilizers at the market price and government would be transferring the cash amount in the farmers account. This will help in rationalising the subsidy burden on the govt.
- Encourage Bio fertilizers and Fertigation techniques to reduce chemical fertilizers consumption.
Mains question
How fertilizers are Subsidised in India? Explain
PRELIMS PUNCHERS
- GIAHS
GIAHS is a programme of the UN Food and Agricultural Organization founded as a UN partnership initiative for sustainable development in 2002. It aims to identify, support and safeguard globally important agricultural heritage systems and their livelihoods agricultural and associated biodiversity knowledge systems cultures and landscapes around the world. GIAHS sites are not living museums, but places where people practise dynamic conservation. They retain the best of the past to build a sustainable future.
Three recognised GIAHS sites in India are Kuttanad Below Sea Level Farming System of Kerala, Koraput Traditional Agriculture of Odisha and Pampore Saffron Heritage of Kashmir.
Sources : https://www.thehindu.com/opinion/op-ed/indias-food-basket-must-be-enlarged/article30109818.ece
- Deep Sea Faunal Diversity
The deep-sea ecosystem is considered to be below a depth of 200 metres, where solar energy cannot support primary productivity through photosynthesis. This publication is the first detailed work on deep-sea organisms of the country. Published by Ministry of Environment, Forest and Climate Change, the book titled ‘Deep Sea Faunal Diversity in India’.
India is surrounded by the Arabian Sea, the Bay of Bengal, the Andaman Sea and the Laccadive Sea (Lakshadweep Sea). Of the 4,371 species, the maximum of 2,766 species has been reported from deep sea areas of the Arabian Sea, followed by 1,964 species from the Bay of Bengal, 1,396 species from the Andaman Sea, and only 253 species from the Laccadive Sea.
- National Crisis Management Committee
A National Crisis Management Committee is a committee set up by the Government of India in the wake of a natural calamity for effective coordination and implementation of relief measures and operations. It is headed by Cabinet Secretary. On the constitution of such a committee, the Agriculture Secretary shall provide all necessary information to and seek directions. A National Crisis Management Committee has been constituted in the Cabinet Secretariat.
The composition of the Committee is as under Cabinet Secretary Chairman, Secretary to Prime Minister Member, Secretary Ministry of Home Affairs Member, Director IB Member, Secretary R&AW Member, Secretary Agriculture & Cooperation Co-opted Member, An officer of Cabinet Secretariat. Convenor
- Tejaswini Project
Tejaswini, which means bright or radiant, is the project which is being executed by the Government of Jharkhand and implemented by the Jharkhand Women Development Society  for empowering 240,000 adolescent girls and young women in the age group of 14-24 years from 17 districts of Jharkhand state.
Tejaswini project aims to organize Adolescent Girls and Young Women (AGYW) of 14-24 years into groups called ‘Tejaswini clubs’ to come together for regular activities, counselling and guidance, life skills education and livelihood support services to build their confidence and enable them to make better future plans. The Tejaswini Project is basically being run with IDA support from World Bank and is being extended to other states also such as Madhya Pradesh.
PRELIMS QUESTIONS
Qn 1. Consider the following statement with reference to GIAHS
- It is a programme of the UNEP founded as a UN partnership initiative for sustainable development
- They retain the best of the past to build a sustainable future.
Select the correct statement using code given below.
(a). 1only                                (b) 2 only
(c). Both of them                (d). None of the above
Answer : B
GIAHS is a programme of the UN Food and Agricultural Organization founded as a UN partnership initiative for sustainable development in 2002. It aims to identify, support and safeguard globally important agricultural heritage systems and their livelihoods agricultural and associated biodiversity knowledge systems cultures and landscapes around the world. GIAHS sites are not living museums, but places where people practise dynamic conservation. They retain the best of the past to build a sustainable future.
Three recognised GIAHS sites in India are Kuttanad Below Sea Level Farming System of Kerala, Koraput Traditional Agriculture of Odisha and Pampore Saffron Heritage of Kashmir.
Qn 2.National Crisis Management Committee is headed by
1 Prime Minister
- Home minister
- Cabinet Secretary
- Finance Minister
Answer : C
A National Crisis Management Committee is a committee set up by the Government of India in the wake of a natural calamity for effective coordination and implementation of relief measures and operations. It is headed by Cabinet Secretary. On the constitution of such a committee, the Agriculture Secretary shall provide all necessary information to and seek directions. A National Crisis Management Committee has been constituted in the Cabinet Secretariat.
The composition of the Committee is as under Cabinet Secretary Chairman, Secretary to Prime Minister Member, Secretary Ministry of Home Affairs Member, Director IB Member, Secretary R&AW Member, Secretary Agriculture & Cooperation Co-opted Member, An officer of Cabinet Secretariat. Convenor