In-Depth Analysis: Fertilizer Policy & Pulse Self-Reliance (Rabi 2025)

This topic is a classic example of how UPSC interlinks Economy (Fiscal Policy/Subsidies), Agriculture (Food Security/Cropping Patterns), and Environment (Soil Health). A Mains answer on this topic must navigate the “Iron Triangle” of Fertilizer Policy: Affordability (for farmers), Fiscal Sustainability (for the Govt), and Environmental Sustainability (for the soil).

The Union Cabinet, in October 2025, approved two landmark decisions: the hike in Nutrient-Based Subsidy (NBS) rates for Rabi crops (2025-26) and the Mission for Aatmanirbharta in Pulses (2025–31). These moves signal a strategic shift from merely “ensuring availability” to “rationalizing usage” and “diversifying crops.” For a Civil Services aspirant, this represents a critical case study in balancing Food Security with Fiscal Prudence and Ecological Health.

Introduction: Decoding the Latest Cabinet Decisions

A. The Fertilizer Subsidy Hike (Rabi 2025-26)

The Cabinet has approved a subsidy of ₹37,952 crore for Phosphatic and Potassic (P&K) fertilizers for the Rabi season.

• Key Fact: The subsidy for Phosphorus (P) has been increased to ₹47.96/kg (up from ₹43.60), and Sulphur (S) to ₹2.87/kg, while Nitrogen (N) and Potash (K) rates remain unchanged.
• The Context: Global supply chain disruptions have kept international prices of intermediates (like ammonia and phosphoric acid) volatile. The hike ensures that farmers continue to get fertilizers like DAP (Di-ammonium Phosphate) at affordable rates (e.g., ₹1,350/bag) despite global price rises.

B. Mission for Aatmanirbharta in Pulses (2025–31)

With an outlay of ₹11,440 crore, this mission aims to end India’s import dependency on pulses (currently ~15-20%).

• Targets:
  • Increase production to 350 lakh tonnes by 2030-31 (from ~242 lakh tonnes).
  • Expand cultivation area by 35 lakh hectares.
  • Achieve yield improvements to 1,130 kg/ha.
• The Game Changer: The mission promises 100% procurement of Tur, Urad, and Masoor at Minimum Support Price (MSP) via agencies like NAFED and NCCF for registered farmers.

Multi-Dimensional Analysis (Mains Focus)

Dimension 1: The Fiscal Perspective (Subsidy Burden)

Fertilizer subsidy is traditionally the second-largest subsidy in India (after Food).

• The Trend: The total fertilizer subsidy bill is estimated to cross ₹1.95 lakh crore for FY 2025-26.
• The Trap: India imports nearly 25% of Urea, 90% of Phosphates, and 100% of Potash. Any fluctuation in global energy prices or geopolitics (e.g., Russia-Ukraine, West Asia) directly balloons India’s fiscal deficit.
• NBS vs. Urea Policy: While P&K fertilizers are under the NBS regime (fixed subsidy, floating MRP), Urea remains under a controlled regime (fixed MRP, floating subsidy). This price disparity discourages the industry from investing in non-urea fertilizers.

Dimension 2: The Ecological & Soil Health Perspective

The most critical issue in Indian agriculture today is the Distorted NPK Ratio.

• Ideal Ratio: Agricultural scientists recommend an N:P:K ratio of 4:2:1 for Indian soil.
• Actual Ratio: Due to cheap Urea (Nitrogen), the national average has skewed to approximately 7.7:3.1:1, with states like Punjab showing even wider disparities.
• Impact:
  • Soil Degradation: Excessive Nitrogen makes plants succulent and susceptible to pests, leading to higher pesticide usage.
  • Groundwater Contamination: Nitrate leaching contaminates drinking water.
• The Pulse Connection: The Pulses Mission is an environmental solution disguised as an economic one. Pulses are leguminous crops that fix atmospheric nitrogen naturally, reducing the need for synthetic urea and restoring soil health.

Dimension 3: Food Security & Import Substitution

• Protein Inflation: Pulses are the primary source of protein for India’s vegetarian population. High import reliance leads to “Dal shocks” (price spikes) which drive food inflation.
• Self-Reliance: By assuring 100% procurement, the government is de-risking pulse farming. This is crucial because pulses are largely grown in rainfed areas (unlike wheat/rice) and farmers previously hesitated due to price volatility.

Key Concepts for Prelims (Factual Clarity)

Concept	Description
NBS Scheme (2010)	Applicable only to P&K fertilizers (DAP, MOP, SSP, etc.). Urea is NOT covered. Government fixes the subsidy per kg of nutrient (N, P, K, S); MRP is market-determined (though effectively monitored).
Urea Policy	MRP is statutorily fixed by the Govt. The difference between production cost and MRP is paid as subsidy to manufacturers.
PM-AASHA	The umbrella scheme under which NAFED/NCCF will undertake procurement of pulses. Includes PSS (Price Support Scheme) and PDPS (Price Deficiency Payment Scheme).
e-Samridhi Portal	The digital platform where farmers must register to avail of the assured procurement for pulses.

Way Forward: Solutions & Policy Reforms

To write a holistic conclusion, suggest these forward-looking measures:

1. Correct the Price Hierarchy: The price of Urea must gradually reflect its economic cost to discourage overuse. The Parikh Committee recommended deregulation of Urea prices.
2. PM-PRANAM Scheme: Use the PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth to incentivize states to reduce chemical fertilizer usage and adopt alternative fertilizers (bio-fertilizers).
3. Technology Adoption:
   • Nano-Urea/DAP: Promotes efficiency and reduces the subsidy bill.
   • Soil Health Cards: Move from “blanket application” of fertilizers to “needs-based” application.
4. Crop Diversification: Shift acreage from the water-guzzling, fertilizer-intensive Rice-Wheat cycle to Pulses/Oilseeds, particularly in the Indo-Gangetic plains.

Previous Year Questions (PYQs)

Mains:

• 2023 (GS III): “What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the WTO in relation to agricultural subsidies.”
• 2020 (GS III): “How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?”
• 2016 (GS III): “What are the major reasons for declining rice and wheat yield in the cropping system? How is crop diversification helpful in stabilizing the yield of the crop in the system?”
• Mock 2026 Mains Question: Fertilizer subsidies in India have ensured food security but created fiscal and environmental stress. Critically evaluate the government’s approach, including mission-mode schemes like Aatmanirbharta in Pulses, in addressing this dichotomy.

UPSC Prelims:

• 2020: Question on identifying Chemical Fertilizers (market-driven vs administered price).
  • Note: It asked about Urea being under Govt control vs. others.
• 2020: Question on Fertigation (advantages).
• 2013: Question on N:P:K Ratio imbalance.