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Economics

The Implications of Urea Overuse in India

  • Urea usage is increasing: The usage of urea has increased, resulting in a decrease in crop yield response to fertiliser use and an imbalance in nutrient application.
  • Unbalanced fertilisation: The nutrient-based subsidy structure does not promote balanced fertilisation.
  • Several measures were ineffective: The Indian government’s initiatives to minimise urea use, such as neem-coating, smaller sacks, and Nano Urea, have not proven successful.

What exactly is urea?

  • Urea is a nitrogen-containing fertiliser that provides crops with the nutrients they require for growth and development.
  • It is a white, crystalline substance that is water soluble and has a high nitrogen concentration (about 46% nitrogen by weight).
  • Urea, which is generated from ammonia and carbon dioxide, is widely utilised in agriculture because to its high nitrogen content and low cost.
  • It is a primary supplier of nitrogen for crops, and when administered correctly, it can raise crop yields and overall agricultural output.
  • In India, urea is used.

Policy moves related to Urea

  • The introduction of these measures was aimed at reducing urea consumption in the country.
  • Neem-coated urea: In May 2015, the Indian government demanded that all urea produced in the country, as well as imported urea, be neem-coated to prevent unlawful diversion for non-agricultural use.
  • Size reduction: In March 2018, the government switched from 50-kg urea sacks to 45-kg bags.
  • Liquid Nano Urea: The Indian Farmers’ Fertiliser Cooperative (IFFCO) just launched a liquid fertiliser called ‘Nano Urea’ in June 2021.
  • The ineffectiveness of the preceding measures
  • Despite the implementation of these steps, the country’s urea consumption has not dropped.
  • In fact, urea sales reached a new high of 35.7 million tonnes (mt) in the fiscal year ending March 31, 2023.
  • Although consumption fell in the first two years after neem-coating was fully implemented, this trend reversed in 2018-19.

Failure of the nutrient-based subsidy (NBS) regime

  • In April 2010, the government implemented the nutrient-based subsidy (NBS) policy.
  • Each fertiliser nutrient – nitrogen (N), phosphorus (P), potassium (K), and sulphur (S) – received a per-kg subsidy under the scheme.
  • The goal was to encourage balanced fertilisation and dissuade farmers from using excessive amounts of urea, di-ammonium phosphate (DAP), and muriate of potash (MOP).
  • The results, however, suggest that the nutritional imbalance has worsened, with urea consumption increasing by more than a third since 2009-10.
  • Nitrogen utilisation efficiency (NUE) has decreased from 48.2% in 1962-1963 to 34.7% in 2018.

Overdose fertilisation costs money

  • Fertilisers are necessary for plant growth and crop yield, but their abuse has resulted in an imbalance in nutrient application.
  • Crop production response to fertiliser use has reduced, with farmers’ disproportionate application of nitrogen being a major cause.
  • According to recent study, nitrogen use efficiency in India has decreased, necessitating the promotion of alternate fertilisers containing various nutrients.

Way ahead

  • Two ways can be taken to solve the issue of increased urea consumption.
  • Disincentive: The first option is to raise prices, but this is politically impossible.
  • Improve nitrogen usage efficiency (NUE) by making the incorporation of urease and nitrification inhibitors in urea mandatory.
Source: https://www.financialexpress.com/opinion/indias-fertiliser-drain-urea-of-darkness/1781237/
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