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Figure 31: Imports of fertilizers (LMT)

Source: Based on data received from the Department of Fertilizers.

7.74 In order to tackle the import dependency and make the subsidy regime more efficient
and transparent, the Government has taken several steps. For example, New Urea Policy-2015
has been notified with the objectives of maximizing indigenous production, promoting energy
efficiency in production, and rationalizing subsidy burden on the government. Government has
made it mandatory for all the domestic producers of urea to produce only neem coated urea.
Government has brought Potash Derived from Molasses (PDM) under Nutrient Based Subsidy
(NBS) scheme for the first time since its inception in 2010 to give a push to its manufacturing
by Sugar Mills as a by-product and reduce its import dependence. Latest technologies such as
coal gasification; implementation of Direct Benefit Transfer for providing benefits to farmers
through Point of Sale machines, etc. are being promoted.

CONCLUSION

7.75 The performance of the agriculture and the allied sector has been resilient to the COVID
19 shock. The sector grew at 3.6 per cent in 2020-21 and improved to 3.9 per cent in 2021-
22. However, as shown by the latest SAS report, the fragmentation of landholdings has led to
alternate sources such as livestock, fishery and wage labour becoming significantly important for
an agricultural household. Increasing importance of allied sectors including animal husbandry,
dairying and fisheries in growth and income of the farmers indicates that focus needs to shift
more towards harnessing the potential of allied activities. There is also a need to improve
productivity of small and marginal farmers through development and implementation of small
holding farm technologies.

7.76 Crop diversification towards oilseeds, pulses and horticulture needs to be given priority
by addressing the core issues of irrigation, investment, credit and markets in their cultivation.
While the Government has adopted the use of MSP as signal to encourage crop diversification,
there is also a need for coordinated action from the State Governments to facilitate the shift to
high value and less water consuming crops to enable realization of the objective of doubling
farmers’ income in a sustainable way.