Enhancing Income of Farmers
Satish Chander
Director General
The Fertiliser Association of India
New Delhi
1
Fertilisers in Indian Agriculture
• Fertiliser – A key input to increase crop yields and
farmers’ income (credited for 50% increase in yields)
• Played significant role in achieving self-sufficiency in
foodgrain production.
• Fertiliser industry contributed in ensuring timely and
adequate availability of fertilisers at farmers’ door
step.
2
Fertiliser related issues
• Average
per
hectare
consumption is still low.
fertiliser
• Fertiliser consumption is imbalanced
• Pricing / subsidy policy has resulted in
imbalanced fertilisation
3
Status of Pricing and Nutrient Use
Year
Urea
DAP
MOP
MRP (Rs./tonne)
Price Ratio
NPK Use
DAP : Urea MOP : Urea Ratio
2009-10
4830
9350
4455
1.94
1
0.92
1
4.3:2.0:1
2010-11
5310
10150
5055
1.91
1
0.95
1
4.7:2.3:1
2011-12
5310
15525
9040
2.92
1
1.70
1
6.7:3.1:1
2012-13
5360
24000
17000
4.48
1
3.17
1
8.2:3.2:1
2013-14
5360
22500
16000
4.20
1
2.99
1
8.0:2.7:1
2014-15
5360
23700
16500
4.42
1
3.08
1
6.7:2.4:1
2015-16
5360
24000
16500
4.66
1
3.08
1
7.5:3.0:1
2016-17
5360
20700
11000
3.86
1
2.05
1
Should
improve
Enhancing Farm Income
• Review of fertiliser subsidy policy
– Fertiliser subsidy was introduced in 1977 to increase
fertiliser production and its use by the farmers
– It served its purpose which is reflected in terms of
significant growth in indigenous capacity, production and
balanced consumption of fertilisers
– Over years, both the objectives have taken the back seat –
domestic industry sick, and concept of balanced
fertilisation has taken a hit
– Present policies need review for utilising large subsidy
funds to maximize farm productivity.
5
Expenditure on Fertiliser Subsidy VS Agriculture &
allied Activities – 12th Plan* period (Rs. Crore)
Total
143094
* = Actual from 2012-13 to 2015-16 and budget allocation for 2016-17.
6
Enhancing Farm Income
• Policy Support
– Corrections in pricing policies for balanced use of
nutrients.
– Provide level playing field to all fertiliser products.
– Encourage value addition of fertiliser by allowing
industry to recover the cost from farmers (as in neem
coated urea).
– Enhanced support to :
• Use of micronutrients
• Use of organic manures/farm yard manure and
biofertiliser
7
DBT for Fertiliser Subsidy
• Need for roadmap of Direct Benefit Transfer (DBT) in
true sense.
• Fertiliser subsidy be paid directly to the farmers.
• Farmers should have a choice in buying fertiliser
products
• Prudent use of fertiliser will lead to
– Improvement in fertiliser use efficiency
– Higher productivity and improved quality
– Enhanced farmer income
8
Thank you
9