Nutrient Based Subsidy (NBS) scheme

Why in news?

• The Union 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 byproduct.

More about the news:

• This move is expected to reduce India’s dependence on 100% import of more than 42 LMT of Mineral based Potash i.e. MOP which cost around Rs. 7,160 crores annually.
• This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs. 73 subsidy per 50 kg bag being sold at Rs 600-800 by Fertilizer Companies to farmers.

About Nutrient Based Subsidy (NBS) Scheme

• This programme was initiated in 2010.
• Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea, based on the nutrient content present in them.
• The scheme is administered by the Department of Fertilizers under the Ministry of Chemicals & Fertilizers.

Features of NBS scheme:

• In India, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price.
• Nutrient Based Subsidy Scheme (NBS) allows the manufacturers, marketers, and importers to fix the MRP of the Phosphatic and Potassic (P&K) fertilizers at reasonable levels.
• The domestic and international cost of P&K fertilisers is considered along with the country’s inventory levels and the currency exchange rate in order to decide the MRP.

Aims of the Nutrient Based Subsidy Scheme:

• NBS was expected to wean away farmers from applying too much urea containing only nitrogen and increase the consumption of P&K fertilizers which will result in balanced fertilization.
• Thus the scheme aims at ensuring that a sufficient quantity of P&K is at the farmer’s disposal at statutory controlled prices.

PRACTICE QUESTION

With reference to chemical fertilizers in India, consider the following statements:

1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.

2. Nutrient Based Subsidy programme for fertilizers is administered by Ministry of Agriculture and family welfare

3. Urea is not covered under Nutrient Based Subsidy programme

Which of the statements given above is/are correct?

(a) 2 only

(b) 1 and 3 only

(c) 3 only

(d) 1,2 and 3

Answer