NUTRIENT BASED SUBSIDY SCHEME (Syllabus: GS Paper 3 – Agriculture)

Context: The indian government has brought di-ammo- niumphosphate (DAP), muriate of potash (MOP) and all other such fertilisers that receive nutrient-based subsidy (NBS) support, under "reasonable pricing" controls.

Nutrient Based Subsidy (NBS) Scheme

• About: Under the NBS policy, the government annually declares a fixed subsidy rate for key nutrients, including Nitrogen (N), Phosphate (P), Potash (K), and Sulphur (S).
• Implemented by: Since 2010 by the Department of Fertilizers
• Nodal Ministry: Ministry of Chemicals & Fertilizers

oFertilizer manufacturers and importers provide farmers with subsidized prices for Urea and 25 P&K fertilizer grades as part of the government's initiative.

• Aim: The NBS policy strives to enhance the utilization of P&K fertilizers to attain the desired NPK fertilization equilibrium, with a ratio of 4:2:1 for Nitrogen (N), Phosphate (P), and Potash (K).
• Fertilizer Covered : Nitrogen(N) , Phosphorus(p) , Potassium (K) and Sulphur(S).
• Fortification/Coating Incentive: Fortified/coated variants of subsidized P&K fertilizers, adhering to Fertilizer Control Order (FCO) provisions for Boron and Zinc, receive additional per tonne subsidies.
• Objective of NBS

oTo guarantee the nation's food security.

oTo enhance agricultural productivity.

oTo ensure the equitable use of fertilizers.

• Benefits 

oIt helps farmers in ensuring availability of essential nutrients at subsidized prices.

oIt rationalizes the subsidy on P&K fertilizers, ensuring effective and efficient utilization of government resources.