How can India ensure food security while managing the fiscal burden of fertilizer subsidies?

Ensuring food security is a key priority for India, given its large population and dependence on agriculture. Fertilizer subsidies play a crucial role in making fertilizers affordable for farmers, thereby boosting agricultural productivity. However, rising subsidy bills put pressure on government finances. Balancing these objectives requires a multi-pronged approach.

• Targeted Subsidy Delivery: Implement Direct Benefit Transfer (DBT) for fertilizer subsidies to ensure that only genuine and needy farmers receive benefits, reducing leakages and misuse.
• Promoting Balanced Fertilizer Use: Encourage the use of eco-friendly and balanced fertilizers (like organic manure, bio-fertilizers, and micronutrients) to reduce overdependence on subsidized urea and improve soil health.
• Encouraging Efficient Fertilizer Use: Promote techniques such as soil health cards, precision farming, and neem-coated urea to optimize fertilizer usage and reduce wastage.
• Rationalizing Subsidy Structure: Gradually move towards nutrient-based subsidy (NBS) for all fertilizers, not just phosphatic and potassic, to correct price distortions and encourage balanced application.
• Boosting Domestic Production: Invest in domestic fertilizer manufacturing and reduce import dependence to stabilize prices and reduce subsidy outgo.
• Supporting Alternative Crops: Promote crop diversification and less input-intensive crops to reduce fertilizer demand and enhance food security through a wider food basket.
• Leveraging Technology: Use digital platforms to track fertilizer distribution, monitor usage patterns, and plug leakages in the supply chain.
• Public Awareness and Training: Conduct awareness campaigns and train farmers on efficient fertilizer usage and alternative soil nutrition practices.