Government Initiatives to Support Farmers' Fertiliser Subsidies

The implementation of a direct fertiliser subsidy for farmers is facing hurdles due to incomplete data on land ownership and farmer status. Lawmakers have stressed the importance of targeted subsidies for farmers who have historically missed out on indirect benefits. To ensure an adequate supply of urea during the Kharif crop season, the government is working on securing urea imports through government-to-government agreements. Efforts are also being made to maintain uniform urea prices and encourage the industry to rationalise costs to support farmers.

One of the major concerns is the time-consuming process of developing a targeted subsidy mechanism, especially during the current crop season. The incomplete digitisation of land records in most provinces is hindering the distribution of subsidies. Buffer stocks are considered crucial to prevent price manipulation and ensure market stability. Additionally, steps are being taken to standardise gas prices for urea production plants to curb malpractices.

Exploring blended gas supplies for select fertiliser plants is being considered to positively impact urea prices. The National Fertiliser Development Centre has provided insights into the country's fertiliser production capacity and the supply-demand scenario for the current season. Strategic measures are being implemented to bridge the gap between international and domestic urea prices.

Imported urea is anticipated to alleviate shortages, with negotiations ongoing for timely arrivals. The Ministry of Industries is collaborating with manufacturers to tackle supply chain challenges. Approval is being sought for additional urea imports to meet demand and maintain adequate inventory levels. Continuous gas supply to urea manufacturers is guaranteed for the upcoming season to enhance production and stabilise prices.

The challenges in implementing a direct fertiliser subsidy for farmers are being addressed through various strategies and collaborations. Efforts to secure urea imports, standardise prices, and bridge price gaps are crucial steps towards supporting farmers and ensuring a stable fertiliser market. The government's commitment to addressing supply chain challenges and maintaining adequate inventory levels reflects a proactive approach to safeguarding the agricultural sector.