Reimagining Fertilizer Subsidies: A Path to Sustainable Soil and Crop Health

An ambitious proposal from the Economic Survey 2025-26 recommends a 'modest increase' in the retail price of urea, unchanged since 2018, complemented by direct financial support to farmers. This strategy intends to shift from traditional input subsidies towards income support, addressing longstanding issues in fertilizer use that harm soil quality and crop productivity.

The Survey criticizes the deteriorating nutrient balance in India, revealing a significant imbalance in the nitrogen-phosphorus-potassium ratio due to excessive urea usage. Experts advocate aligning fertilizer decisions with agronomic needs, rather than economic distortions, to reverse soil degradation and encourage optimal use of nutrients.

Implementation involves a zone-specific approach, considering diverse agro-climatic conditions and cropping patterns. The Survey suggests piloting these reforms initially in selected regions and emphasizes the potential of India's digital agriculture infrastructure to support such strategic changes.