Economic
Highlights
New Delhi, 2 August 2007
Increasing
Use of Fertilizers
LOOK AT
CHEAPER & SAFER ALTERNATIVES
By Dr. Vinod
Mehta
Fertilizers have played a significant role in raising
the productivity of Indian agriculture.
It is common knowledge that the Green Revolution was based on a package
of inputs that included fertilizer, water, high-yielding varieties of seeds
etc. Today, fertilizers are gaining prominence as an important agricultural
input in our quest for attaining consistent surplus in the agricultural sector.
This is a common pattern in developed countries, where fertilizers are used to
boost the agricultural output, especially grain production to feed growing population.
In the past over four-and-a-half decades, both the
production and use of fertilizers in the country has been increasing by leaps
and bounds. The available data shows that the production of nitrogenous
fertilizers has increased from 80,000 tonnes in 1955-56 to 107 lakh tonnes in
2001-02. Similarly, the consumption of
fertilizers has increased from 66,000 tonnes in 1952-53 to 173 lakhs tonnes in
2001-02.
Even though the production of fertilizers has gone
up, we are still dependent upon imports for a significant portion of our needs.
In 1970-71 imports of fertilizers stood at 629, 000 tonnes and in 2001-02 they stood
at 2,398, 000 tonnes. The use of fertilizers has helped increase the grain
input of the country to the extent that we are self-sufficient in its
production. Besides, in times of natural calamities like drought, we are able
to meet our food requirements from domestic sources only. All thanks to the use
of fertilizers.
However, the negative aspect of the whole thing is
that the subsidies which are being paid to the fertilizer industry are
enormous. India has no comparative advantage
in the production of fertilizer. Therefore, to keep the fertilizer units viable
the Government has been paying huge subsidies to this sector. India's fertilizer subsidy bill has
escalated from Rs. five billion in 1980-81, to over Rs. 60 billion by the
mid-'90s, and further to Rs.162.50 billion as per the 2005-06 budget. India spends over
0.7 per cent of it’s GDP on fertilizer subsidies--almost twice the entire
amount we spend on higher education.
Such an amount of subsidy is playing havoc with the State
finances. It is a sheer drain on the
central funds. All attempts made in the
past have so far not been successful
in curbing subsidies on fertilizers. What needs to be stressed is that we have
gained self-sufficiency in grain production at a very high cost. And, this amount
of subsidy is unsustainable.
One of the factors for this subsidy is that the fertilizer
units require a lot of LPG to run them.
Since we don’t have sufficient reserves of LPG, we are being forced to
import LPG it at a very high cost. Therefore,
the important question before us is: if the country has no comparative
advantage in the production of fertilizers, then why should it not close down
the fertilizer units and meet its requirements from imports? It would be
cheaper and this way we won’t be forced to pay a subsidy of over Rs 8,000
crores year after year.
The other important aspect is that India has large
reserves of coal and perhaps natural gas.
Why cannot we develop a technology that uses coal energy to produce
fertilizer and thus reduce production costs of fertilizers?
There is also an environmental aspect to the
fertilizer industry. Indiscriminate use
of fertilizers by farmers is also making vast tracts of agricultural land useless. Though the Ministry of Chemicals and Fertilizers
is aware of the damage being caused to environment by the use of fertilizers
not much has been done to improve the situation.
Along with the use of fertilizers has come the use of
pesticides and insecticides. These are health hazards for those who eat the produce
of agriculturists using fertilizers, pesticides and insecticides in a big way.
Like diesel, which affects the health of the people by way of environmental
pollution, the use of fertilizers, pesticides etc., too is directly affecting peoples’
health.
The Government is well aware of this hazard and is,
therefore, encouraging research on bio-fertilizers. However, it is moving very
slowly. If it wants it can play an important role by encouraging research on
bio-fertilizers and reducing their dependence on imported fertilizers.
The other draw back from the use of fertilizers is
that different types of fertilizers need to be combined in appropriate proportion
with other fertilizers like Potash, which is not manufactured in India at the
moment.
In the long run, the indiscriminate use of urea
without potash could damage the productivity of agricultural land. In this
connection, the Ministry of Chemicals and Fertilizers has set up an Expert
committee to prepare the R&D road map for the fertilizer industry and also
monitor its progress. But this needs
to be taken up seriously.
Another important question that begs an answer is: do
we really need to use fertilizers on such a large scale to increase our
agricultural output? Studies by many
economists have shown that better use of irrigation water can achieve the same
result and at a much lesser
cost. One of the economists has worked
out that if the fertilizers subsidy budgeted for 1997-98 is used for sinking
wells it could generate capacity to irrigate at least three million hectare of
land. Besides, within less than
three years the additional output due to increased irrigation would more than
compensate the loss of output due to
increased prices of fertilizer and consequent reduction in its use. This is an important issue
which needs to be discussed at all
the levels.
In addition, India has vast human and cattle
population. Can’t we find out a way to collect the human and cattle waste on a
large scale and turn it into traditional manure. Some countries like China have
not only mastered the use of scarce water in an economical way but they have
also mastered the use of human and cattle waste as traditional manure to
increase the productivity of agriculture.
Thus, on the one hand we have chemical fertilizer that is not economical
for India
to produce and on the other we have large quantities of human and cattle waste
which can be a cheaper substitute for fertilizer.
Today, many countries are moving away from the excessive use of chemical fertilizers to the use of
traditional manures, organic manure and bio-fertilizers to sustain the increase
in agricultural productivity. Researches
on such types of manures have been strengthened so as to fight the threat posed
to the general health of the people by the excessive
use of fertilizers. India also
needs to strengthen its researches in this direction to protect the health of
its population.---INFA
(Copyright,
India News and Feature Alliance)
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