Committee warns against fertilizer subsidy funding cuts

A parliamentary committee has warned the government about under-funding subsidy schemes for fertilizers. This could hurt farmers who depend on these financial supports. The Standing Committee on Chemicals and Fertilizers, led by MP Kirti Azad, asked the Union Fertilizers Ministry to request more funding during budget revisions. They highlighted the importance of developing domestic production capabilities for modern fertilizers like nano urea and nano diammonium phosphate (DAP). The committee also pointed out that while the government has been working to secure materials from resource-rich countries, it hasn’t focused on mining agreements for local resources. They believe these agreements are necessary to improve fertilizer supply in India. The report noted a proposed budget of ₹1,84,704.63 crore for 2025-26, but the Ministry of Finance cut it by 7.38%, which may slow down subsidy schemes. The report mentioned that funds were underutilized in the past year, affecting various categories like native phosphorus and potassium fertilizers, and urea. The committee emphasized that urea is crucial for food production and must be supported. They reported that using nano urea has resulted in better crop yields. For example, using it alongside conventional urea boosted pea yields significantly. The committee urged the government to increase the production capacity for nano fertilizers and ensure timely establishment of production units to support farmers effectively.