Commission for Agricultural Costs & Prices (CACP) highlights imbalanced fertilizer subsidies undermining yields and soil health | Current Affairs | Vision IAS
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Commission for Agricultural Costs & Prices (CACP) highlights imbalanced fertilizer subsidies undermining yields and soil health

Posted 16 Oct 2025

2 min read

The CACP highlighted issues related with fertilizers in its recent report Price Policy for Rabi Crops, Marketing Season 2024-25.

Key Issues Highlighted

  • Decreasing fertilizer response: Foodgrain production per kg of NPK fell from 12 kg (1960-69) to 3 kg in 2020.
  • Impact of Subsidy Structure: Overuse of urea due to subsidies has caused nutrient imbalances and lopsided soil fertility. 
  • Uneven Fertilizer Use: In some States and districts, per hectare use is higher than required quantity, while in others, the use is very low. 
    • E.g. Some districts of Andhra Pradesh and Tamil Nadu record > 500 KG per hectare use which is far above recommended levels.
  • Dependent on imports of both raw materials and finished fertilizers: About 30 % of demand is met through imports.

Recommendations of CACP

  • Phased Urea Price Increase: Use subsidy savings to support P & K fertilizers. 
  • Promote Integrated Nutrient Management (INM): It integrates chemical fertilizers, organic manure, and bio-fertilizers.
  • Strengthening Soil Testing: Upgrade labs, install modern equipment, and train staff for real-time soil analysis and advisory services.

Measures to address Fertilizers related Issues

  • Nutrient-Based Subsidy (NBS) Scheme
  • PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother-Earth (PM-PRANAM),
  • Other Soil Health Card, Neem-Coated Urea, promotion of nano fertilizers etc. 
  • Tags :
  • Fertilizer subsidy
  • CACP
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