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India's Nutrient Based Subsidy (NBS) system provides financial support for certain fertilizers to farmers.
Its primary goal is to ensure phosphatic and potassic (P&K) fertilizers are available at affordable prices.
NBS encourages the balanced application of essential plant nutrients, vital for soil health.
The scheme forms a crucial component of India's broader agricultural and fertilizer policy since its introduction in 2010.
The Nutrient Based Subsidy (NBS) policy, implemented by the Indian government in 2010, provides subsidies on phosphatic and potassic (P&K) fertilizers. Instead of subsidizing the final product, a fixed amount of subsidy is provided on each grade of subsidized P&K fertilizer based on its nutrient content (Nitrogen, Phosphorus, Potash, Sulphur). This amount is determined annually by the government. Manufacturers and importers are then free to determine the retail prices of these fertilizers, with the government compensating them for the fixed subsidy amount. The primary objective is to ensure these critical fertilizers are accessible to farmers at reasonable prices and to encourage a more balanced application of nutrients, moving away from the previous product-specific subsidy regime that often led to overuse of urea.
Simple Analogy: Imagine the government giving you a fixed 'health coupon' for buying specific healthy food ingredients like fruits and vegetables, rather than subsidizing a particular brand of processed food. This encourages you to buy a variety of healthy ingredients based on your needs, rather than just the cheapest processed option.
To ensure the availability of phosphatic and potassic (P&K) fertilizers to farmers at subsidized prices and to encourage balanced nutrient application for improved soil health.
Key: A fixed per-nutrient subsidy is announced annually by the government. Manufacturers/importers determine retail prices. Urea is excluded and continues under a separate product-specific subsidy.
Affordable fertilizers through NBS contribute to higher agricultural yields, directly impacting national food security by ensuring sufficient food production.
NBS promotes balanced fertilization, which complements the Soil Health Card Scheme's objective of advising farmers on optimal nutrient use based on scientific soil analysis, thereby improving soil health.
Fertilizer subsidies represent a significant portion of the government's budget. NBS aims to manage this fiscal burden more efficiently compared to product-specific subsidies, impacting overall fiscal deficit and resource allocation.
GS-III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Major crops-cropping patterns; Issues related to direct and indirect farm subsidies; Food processing and related industries; Land reforms.
General Awareness: Indian Economy, Government Schemes, Agriculture.
General Awareness: Indian Economy, Government Schemes, Agriculture & Rural Development.
General Awareness: Indian Economy, Government Schemes, Agriculture.
Consider the following statements: 1. India has more arable area than China. 2. The proportion of irrigated area is more in India as compared to China. 3. The average productivity per hectare in Indian agriculture is higher than that in China. How many of the above statements are correct?
Answer: Only two
What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below:
Answer: Both 1 and 2
Consider the following statements: The nation-wide 'Soil Health Card Scheme' aims at 1. expanding the cultivable area under irrigation. 2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality. 3. checking the overuse of fertilizers in farmlands. Which of the above statements is/are correct?
Answer: 3 only
Medium to High for UPSC (policy analysis), High for other exams (scheme details and factual recall).
A government policy providing fixed per-nutrient subsidies on phosphatic and potassic fertilizers.
Fertilizers providing phosphorus and potassium, essential macronutrients for plant growth, covered under NBS.
The application of nutrients in appropriate proportions to meet crop requirements and maintain soil health, a key objective of NBS.
A separate product-specific subsidy for urea, which is not covered under the NBS scheme.