What Is The Urea Subsidy Scheme: Benefits And Future Of The Farming
Updated: 28-01-2025 at 6:21 AM
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As India’s largest employer and accounting for 17.8 percent of the domestic production, the agricultural sector is indeed an important factor in the country's economic development. In a country that has more than 1.38 billion people to feed, ensuring food supply for the growing population is a task that the government is struggling with. It has therefore introduced some measures and programs to help farmers and increase agricultural yields. One of these programmes is the Urea Subsidy Scheme. It is a government yojana to ensure sustainable agriculture and improve the lives of many farmers in this vast country.
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Why Is There A Need For The Urea Subsidy Scheme?
Due to the changing geopolitical situation and increased prices of raw materials, the prices of fertilizers have multiplied globally in recent years.
Also, over 86.1 per cent of Indian farmers hold less than 2 hectares of land, the bulk of which is up to 0.90 hectares. This underscores the importance of cheap and good-quality inputs for farmers—fertilisers in particular.
Urea, a nitrogenous fertiliser, is an indispensable part of the growth of various crops, such as food grains (rice, wheat) and cash crops (sugarcane). The current data suggests that India has a urea demand of about 360 lakh metric tonnes every year.
To encourage domestic urea manufacturing, the government initiated multiple measures to reduce imports in this space, resulting in several companies shifting their focus to this space.
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What Is Urea Subsidy Scheme?
The Urea Subsidy Scheme in India aims to ensure farmers' affordability and availability of urea. Under this sakari yojna financial assistance to urea production enterprises is provided, allowing them to sell fertiliser to farmers at a low price.
The Urea Subsidy Scheme's primary goal is to support agricultural productivity to ensure food supply. These benefits not only ensure that the price of urea remains low for farmers but also encourage fertiliser companies to keep an unceasing supply and sales network available.
Benefits Of Urea Subsidy Scheme
Here are the benefits of Urea Subsidy Scheme
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Boosted Agricultural Output: Domestic production and the long-term supply of urea have increased, helping to fill the nutrient-deficient soil for high-yield agriculture, thereby enhancing agricultural productivity and grain output, thus providing an impact on the overall food security in the country.
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Current welfare of the farmers: The subsidy has provided much-needed monetary relief to the farmers, and they were able to redirect their money into other primary inputs, which propped up their general profitability as well.
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Balanced Application of Fertilisers: The scheme will encourage the farmers to adopt integrated nutrient management practices by reducing the usage of chemical fertilisers and fertilisers or organic manure mainly for reducing the load on soil.
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Rampant Domestic Production: The implementation of new units and revival programs has helped to reduce dependency on urea imports while also improving domestic supply chain processes.
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Challenges With The Urea Subsidy Scheme
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The subsidisation of urea represents a significant financial burden for the economy.
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It is the second largest subsidy after the food subsidy thus having an impact on the country’s finances.
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The unbalanced use of fertilisers has negative impacts on the environment, such as soil degradation and nutrient runoff, which affects the long-term sustainability of agriculture.
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A subsidy scheme for urea makes it vulnerable to black marketing of urea.
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The introduction of a uniform subsidy system for urea can eliminate the need for regional differences that can lead to sub-optimal nutrient applicants, price volatility and productivity losses.
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Conclusion
The Urea subsidy Program is a good step to support farmers. Since the Indian economy is based on agriculture, this kind of scheme will increase the productivity of agriculture manifold. The scheme has been instrumental in incentivizing the balanced use of fertilizers in the country and has helped to increase the productivity of various crops; hence, it influenced agricultural growth and ensured total food security for the nation.
For more information, mail at nodal.officer@fertilizers.gov.in.in or call 011-23381395.
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