Agriculture, with its linked industries, is India’s greatest source of income. The agricultural sector provides 19.9 per cent to the country’s GDP (as of FY 2020-21), with 54.6 per cent of the people involved in farming. While India has attained food grain self-sufficiency, the manufacturing process is labour-intensive and regionally biased. Because most rural households rely on agriculture for a living and the country’s agricultural soil is degraded and eroded to varying degrees, many farmers employ chemical and organic fertilizers to improve plant nutrition and crop yields, hence increasing their earnings. RJD’s Rajya Sabha member AD Singh RJD, find out loopholes in government’s fertilizer policies and further proposes right way to move forward towards self-reliance.
For nearly two decades, India has been a net importer of fertilizer nutrients (NPK). India purchased $6.7 billion worth of fertilizers in 2019-20. Urea ($2.9 billion) is at the top of the list, followed by diammonium phosphate ($2 billion) and muriate of potash (MOP, $1.14 billion). In the case of MOP, we are completely reliant on imports, whereas in the case of DAP, we import both the rock and the finished product.
“Because we lack the raw resources needed to create DAP and MOP, India will continue to rely on imports of these fertilizers. However, India intends to be Atmanirbhar by establishing five new urea plants in the public sector with a total capacity of 6.35 MMT, which we imported roughly 11 million tonnes of in 2019-20,” informs A D Singh of RJD. Almost 70 per cent of the gas used in urea factories is imported at a significantly greater price than domestic gas. The one in Talcher, out of the five, is based on coal gasification using Chinese technology. Many of these will cost more than $400 per tonne, despite the fact that the worldwide price is typically between $250 and $300 per tonne. “We all know that most of our public-sector firms end up being white elephants with huge operating costs that must eventually be sold to the private sector. Why didn’t we allow existing urea facilities in the private sector to grow and produce at a lower cost? The government is the only one who knows the answer,” says AD Singh of RJD.
The most effective technique to accomplish Atmanirbharta in fertilizers is to modify the subsidy scheme. Equivalent cash should be sent directly into farmers’ accounts on a per-hectare basis, freeing up fertilizer costs. Allow private sector factories to compete and increase urea production at a reasonable cost, whether in the United States or in Persian Gulf countries where gas is significantly cheaper. That is correct, Atmanirbharta (self-reliance). Will the Modi government make a decision on this, or will it manufacture white elephants that will be sold off in 10 years? Only time will tell if this is true.
Some methods could be used to achieve the Abhiyan’s aims. As the government has set aside a large sum of money for the development of several sectors and initiatives, it is critical that the monies generated be properly allocated and reach the intended recipients. Natural disasters and pandemics have a significant impact on the disadvantaged population. As a result, the country must be prepared to face both environmental and economic problems. Any idea or policy’s success is dependent on strong governance and an adequate framework for putting it into action.
AD Singh RJD concludes that to become a self-sufficient and worldwide supplier, we must raise both the quantity and quality of the item, so that we can take advantage of the opportunity that has been diverted from China. It is necessary to assess the genuine potential of various sectors in urban and rural India and equip them with appropriate resources in order to successfully implement the initiatives described in Abhiyan.
(India CSR)
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