New Delhi: India should gradually shift from product-based fertiliser subsidies to direct support for farmers, backed by digital records of cultivation and crop-specific nutrient requirements, to curb excessive urea use and improve soil health, according to Indian Council for Research on International Economic Relations (ICRIER).
Two policy briefs by ICRIER have recommended linking subsidies to cultivated area and crop productivity rather than the type of fertiliser purchased. The reports - Repurposing India's Fertiliser Policy towards Nutrient Optimisation and Digital Pathway to Targeted Fertiliser Support - call for bringing urea under a nutrient-based subsidy (NBS) framework as an interim measure, while the government considers a gradual transition to direct cash transfers. Urea's heavily controlled price, compared with other fertilisers, encourages excessive nitrogen application and underuse of phosphorus and potassium, the first report says.
The reports recommend integrating farmer identity, land records, crop details, soil information and fertiliser purchases through platforms such as AgriStack. This could help determine entitlements based on the actual cultivator, cultivated area and crop-specific requirements, while improving oversight of fertiliser sales and reducing diversion. The second report cautions that digital systems must recognise tenant farmers and sharecroppers, who may cultivate land without appearing as its registered owners. Inaccurate records and registration barriers could otherwise exclude eligible farmers. The reports also call for soil-specific fertiliser recommendations, customised and fortified products, biofertilisers, organic inputs and more efficient application techniques. They advocate the "right source, right rate, right time and right place" approach to nutrient management. Potential savings from improved subsidy targeting could be redirected towards soil health, water conservation, efficient irrigation and crop diversification, the reports suggest.