After facing the Opposition-sponsored cut motions on urea price and fuel price hike during the recently concluded Budget session of Parliament,the government has now decided to speed up the process of implementing nutrient-based subsidy (NBS) regime.
The Committee on Optimisation of Fertiliser Usage,constituted by the Cabinet Secretariat to prepare a roadmap for implementation of NBS,is scheduled to hold its first meeting on Tuesday.
The Committee,headed by ex-agriculture secretary T Nanda Kumar,comprises secretaries of Departments of Agriculture,Fertilizer,Expenditure,ICAR,National Rainfed Area Authority (NRAA) and representatives from the Planning Commission and Kaushik Basu,Chief Economic Advisor in the Finance Ministry.
Sources said the committee would first make a holistic assessment of the changing status of nutrients in the soil in the country and develop a crop-wise and area-wise requirement of fertilisers,including micro-nutrients. Subsequently,it is expected to review the implementation of various schemes promoting use of micro-nutrients and also the implementation of the soil health analysis system in the country. Based on the inputs received from the stakeholder departments,the committee would prepare a roadmap for implementation of NBS.
The urea price hike followed the governments decision to shift the fertiliser subsidy pattern from product-based subsidy to nutrient-based subsidy regime ahead of the Budget session.
Though the government had announced implementation of NBS from April 1,the Opposition-sponsored cut motions had put a question mark on the future of this new subsidy regime,where the prices of fertiliser products are left to the market while the government offers subsidy based on the nutrient content of each fertiliser product. This is unlike the previous regime where the government had stipulated subsidy for identified group of fertilisers used across the country.
However,the earlier product-based subsidy regime has widely been held responsible for increased usage of urea (nitrogen) in the fields because of relatively lower prices of urea while depriving soil of much-required micro-nutrients. The government hopes NBS will create incentive structures for the farmers as well as fertiliser industry to minimise the imbalanced fertiliser usage across the country.