Context:
The Parliamentary Standing Committee on Chemicals and Fertilizers, chaired by Trinamool Congress MP Kirti Azad, has made several significant recommendations in its recent report on the Demands for Grants for 2025-26:
- Request for Additional Budget Allocation
- The committee has urged the Union Fertilizers Ministry to seek additional funds at the revised estimate stage to prevent negative impacts on key subsidy schemes for farmers.
- It expressed concern over the 7.38% budget cut made by the Ministry of Finance, reducing the department’s projected outlay from ₹1,84,704.63 crore to ₹1,71,082.44 crore.
- Expansion of Nano Fertilizer Production
- The panel recommended speeding up the establishment of production units for nano urea and nano diammonium phosphate (DAP).
- Field trials showed notable crop yield improvements when using nano urea, with peas showing up to 14.82% improvement and sugarcane the lowest at 4%.
- Nano DAP trials indicated potential to reduce conventional granular DAP usage through seed treatment and foliar application.
- Focus on Self-Sufficiency in Fertilizers
- While acknowledging agreements between Indian fertilizer companies and foreign suppliers, the committee pointed out that no mining lease agreements for domestic resource extraction or refining had been secured.
- The report stressed that physical measures and targeted investment are critical for achieving self-reliance in fertilizer production.
Concerns Raised by the Committee
- Budgetary Reduction Impact:
- Cuts in both the Nutrient-Based Subsidy (NBS) Scheme and the Urea Subsidy Scheme could disrupt subsidy disbursement and implementation.
- Underutilisation of Funds in 2024-25:
- 20% under indigenous phosphorus and potassium (PK) fertilizers.
- 12% under imported PK fertilizers.
- 14.76% under indigenous urea.
- 59.57% under Market Development Assistance (MDA).
- The committee called for better planning and full utilisation of allocated funds.
Strategic Recommendations
- Increase investments and secure mining leases for domestic extraction and production of fertilizer raw materials.
- Accelerate the setup of nano urea and nano DAP production facilities.
- Ensure that financial cuts do not hinder critical farmer subsidy schemes or fertilizer availability.
- Improve financial planning to eliminate underutilisation of allocated budgets in future fiscal cycles.
The committee’s report highlights the critical need for:
- Adequate funding for fertilizer subsidies.
- Strategic resource security measures.
- Timely scaling of nano fertilizer production.
These steps are pivotal to supporting Indian farmers, ensuring food security, and driving the country toward fertilizer self-reliance in line with the vision of Aatmanirbhar Bharat.
