NEWS: Uttar Pradesh Govt.’s recent ban on the sale of non-subsidised speciality nutrients by authorised fertiliser dealers àdebate about India’s fertiliser regulatory regime.

ABOUT

• The Central Government exercisesà absolute control by legally fixing the pan-India MRP of urea at ₹242 per 45 kg bag
• Nutrient-Based Subsidy (NBS)à the government enforces “Reasonableness of MRP” guidelines on Phosphatic and Potassic (P&K) fertilisers to =ensure affordability.
• The Fertiliser Movement Control Order 1973à Empowers the Department of Fertilisers (DoF) to determine rail “rake” destinations and state-wise equitable supply plans.
• The Pradhan Mantri Bhartiya Jan Urvarak Pariyojana (PMBJP) àmandates a single brand name, “Bharat”, for all subsidised fertilisers.
• The Direct Benefit Transfer (DBT) systemà Releases 100% subsidy to companies only after Aadhaar-authenticated sales through Point of Sale (PoS) devices.

Arguments in Favour of Fertiliser Controls

• Controls inflation: Fixed urea prices protect farmers from global price fluctuations in raw materials
• Government allocation systemàEnsures fertilisers reach remote and less profitable areas.
• Protects small farmersà Rules prevent forced bundling of urea with costly, non-subsidised fertilisers.
• “Bharat” branding and central monitoring reduce fake or low-quality fertilisers in the market.

Arguments Against Fertiliser Controls

• Heavy subsidy on ureaà Distorted the ideal N:P:K ratio (11:4:1 vs ideal 4:2:1) à soil degradation
• Mandatory “Bharat” branding removes product differentiation, reducing companies’ motivation to invest in farmer support services.
• Sudden regulatory changes create unpredictability and discourage private sector investment.

Way Forward

• Promote nano & green fertilisers: Use new eco-friendly fertilisers to reduce imports and costs.
• Give subsidy directly to farmers
• Reduce restrictions on special fertilisers: Allow companies to sell advanced fertilisers easily to support modern farming.