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Inputs: fertiliser, seed, water, credit and insurance

What a farmer needs to grow a crop, and the policies that supply it.

Showing 4 of 6 articles, those that changed from 1 July to 30 September 2026.Show all

Urea policy and the fertiliser subsidy

Prelims and Mains

LeadUrea: a new investment policy and an old subsidy problemJuly 2026

Why in news

On 15 July 2026 the Cabinet approved the National Investment Policy for Urea, 2026, to draw investment into new gas based urea plants. In June the fertiliser subsidy for the year had been projected at double the Budget's figure, as import prices rose.

Background

Urea is sold to farmers at a price fixed by the government, far below its cost. The Centre pays the difference to the maker or importer.
Other fertilisers, those with phosphorus and potash, come under the Nutrient Based Subsidy, where the subsidy is fixed and the price is free to move.

India makes about three quarters of the urea it uses and imports the rest. Most plants run on natural gas, and much of that gas is imported too.
So the price of gas and of urea abroad passes straight into the subsidy bill.

What the new policy does

It assures investors a return on equity within a band.

It aims at eight or nine new plants, adding about 10 million tonnes a year, enough to close the import gap.
It follows the policy of 2012, which brought six new plants.

Why the subsidy is a problem

Fiscal: the bill swings with world prices and is hard to budget.
Soil: cheap urea is overused. Nitrogen, phosphorus and potash should be applied at about 4:2:1; in practice nitrogen far exceeds that.
Environment: excess nitrogen pollutes groundwater and gives off nitrous oxide, a greenhouse gas.
Leakage: subsidised urea is diverted to industry and across borders.
Dependence: making urea at home still needs imported gas, so self reliance in urea is not self reliance in energy.

The way forward

Bring urea under the Nutrient Based Subsidy, so that prices signal balanced use.
Move in time to a direct transfer to the farmer, for each acre or each unit of nutrient.
Promote nano urea, coated urea and organic sources.
Use soil health cards to guide the dose.

Prelims facts

Urea supplies nitrogen; it is 46 per cent nitrogen.
Urea is under statutory price control; phosphatic and potassic fertilisers are under the Nutrient Based Subsidy, in force since 2010.
All urea made or imported for farming is neem coated.
India imports about a quarter of its urea.
The Department of Fertilisers is under the Ministry of Chemicals and Fertilisers.

Open the lead on its own page

Urea is sold to farmers at a price fixed by the government, far below its cost. The Centre pays the difference to the maker or importer.

What changed

15 Jul 2026LeadUrea: a new investment policy and an old subsidy problem

Pradhan Mantri Kisan Samman Nidhi

Prelims

The Pradhan Mantri Kisan Samman Nidhi pays farmers ₹6,000 a year in three instalments.

What changed

31 Jul 2026Briefnewly addedThe Cabinet continued the scheme from 2026-27 to 2030-31 with ₹3.15 lakh crore, keeping the ₹6,000 a year. It has paid 23 instalments, the latest to 9.49 crore farmers. Press Information Bureau, 31 Jul 2026: Cabinet approves continuation of the Pradhan Mantri Kisan Samman Nidhi to 2030-31 (opens in a new tab)

Urea and phosphatic fertiliser supply

Mains

India's fertiliser supply for the kharif season depends on imports of urea and on world prices of the inputs of diammonium phosphate (DAP).

What changed

3 Aug 2026Briefnewly addedUrea imports in April to June tripled to 25.1 lakh tonnes, keeping availability above the kharif requirement. High prices of phosphoric acid and sulphur strained DAP supply, and the Centre gave special support over the Nutrient Based Subsidy to hold DAP at ₹1,350 a bag. Mains: Dependence on imported inputs ties the fertiliser subsidy bill to world prices. The Indian Express, 3 Aug 2026

Forced bundling of fertilisers

Mains

Bundling is the practice of making a farmer buy a non subsidised product along with a subsidised fertiliser.

What changed

6 Aug 2026Briefnewly addedA parliamentary standing committee recommended amending the Fertiliser (Control) Order, 1985 to ban bundling non subsidised products with subsidised fertilisers. It asked for separate billing and coordination between the Centre and the States, since bundling raises farmers' real cost of urea and diammonium phosphate (DAP). Mains: Bundling takes back from the farmer part of the subsidy the fertiliser price is meant to pass on. PRS Legislative Research, 6 Aug 2026: Monthly Policy Review, August 2026 (opens in a new tab)