India’s fertilizer subsidy is the 3rd largest in the Fiscal budget after oil & food subsidies. It is estimated to be in the tune of Rs 65,000 Crores for FY 13. With high fiscal deficit, BOP crisis & threat of ratings downgrade by international credit agencies, Indian govt has no choice but to reduce the fertilizer subsidies. This reduction in subsidy would most likely lead to increase in prices for fertilizers. The government of India has already signalled their intention on the same.
Overuse of Fertilizers in India :
The all-India average consumption of fertilizers was 167.2 kg per Hectare whereas the world average consumption of fertilizer was 122.4 kg per hectare in 2009 ( as per world bank data).
This shows that fertilizer usage in India is already more than required & above world average even though the yields are below average for most crops.
Artificially low fertilizer prices due to subsidies gave a false incentive to farmers to overuse fertilizers. Additionally a gap in transfer of scientific knowledge to farmers on optimal fertilizer application is another reason for overuse of fertilizers.
Only fertilizers are not efficient:
Depletion in soil organic carbon is leading to poor fertilizer use efficiency (FUE) of the soil which on average is estimated to be 33% for N; 15% for P; 20% for K and micronutrients as against 50% for N; 30% for P and 50% for K with the best management practices.
Thus using a product rich in Soil organic Carbon (SOC), such as Biochar, increase the fertilizer use efficiency (FUE) of the soil thereby decreasing the long term requirement by up to 20%.
-Aakash Agarwal
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