The government has rightly emphasised the need for shifting away from chemical fertilisers, reducing imbalance in nutrient use and rejuvenating the soil. But this won’t be possible till the existing policy framework is changed
The announcements on urea perpetuate their use by emphatically stating that the extant pricing and subsidy policies will continue.
The Union government made three major policy announcements on June 28, 2023 — continuation of the urea subsidy scheme up to 2025-26 with an outlay of Rs 3.68 lakh crore, continued availability of urea to the farmers at the maximum retail price of Rs 242 per 45 kg bag and a new scheme PM-PRANAM (PM programme for restoration, awareness, nourishment and amelioration of mother earth).
The first two announcements are in contradiction with the third. While PM-PRANAM seeks to disincentivise the use of chemical fertilisers by giving to the states 50 percent of the savings in subsidy resulting from a reduction in their use, the announcements on urea perpetuate their use by emphatically stating that the extant pricing and subsidy policies will continue. The overarching effect of these policies will also militate against an incentive of Rs 1,500 per metric tonne under the Market Development Assistance (MDA) proposed to support marketing of organic fertilisers.
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https://www.moneycontrol.com/news/opinion/the-success-of-pm-pranam-depends-on-reducing-urea-usage-by-farmers-10913551.html