India is experiencing a turning point in its agricultural journey, where the fertilizer support program is one of the essential cornerstones of its strategy to maintain food security. However, this system reveals significant challenges that threaten its sustainability and achievement of its goals. The excessive reliance on chemical fertilizers, supported by the government, has exacerbated issues of soil degradation, water pollution, and increased greenhouse gas emissions, threatening biodiversity and agriculture in the future. In this article, we review the necessity of restructuring the current fertilizer support system and propose solutions for sustainable practices that contribute to enhancing agricultural productivity and improving farmers’ conditions by introducing an incentive system based on soil health data and ensuring balanced benefits both environmentally and economically.
Challenges of the Fertilizer Support System in India
The fertilizer support programs adopted by India are one of the cornerstones of its strategy to ensure food security. However, this system faces numerous challenges that threaten its sustainability. One of the main issues is that the government pays subsidies to fertilizer manufacturers, making the prices of these fertilizers low for farmers. Consequently, farmers are often unaware of the real costs of fertilizers, leading to their excessive use. For example, in 2017, the overuse of nitrogen-based fertilizers contributed to a 57% increase in greenhouse gas emissions in the country, indicating the negative impact of this usage.
These practices cause soil degradation, water pollution, and increased greenhouse gas emissions. For instance, low-quality fertilizers and their increased usage put pressure on the national budget, as India allocated about $20 billion for fertilizer support in the agricultural budget for the year 2024. Also, these fertilizers are smuggled or used in non-agricultural industries, resulting in a loss of approximately $715 million.
One of the factors contributing to this crisis is that about 70% of farmers do not analyze their soil or follow nutrient management recommendations, leading to deteriorating soil health and threatening agricultural productivity in the long term. Therefore, the problem of excessive fertilizer use becomes more complex and must be addressed deeply to ensure the sustainability of agricultural production in India.
Direct Support Transfer to Farmers
Shifting fertilizer support directly to farmers instead of supporting manufacturers can lead to significant positive changes. Through this approach, the government would not be obliged to pay subsidies to manufacturers, but rather, farmers would have control over the funds. This would incentivize them to use fertilizers more efficiently. For instance, if a farmer uses less fertilizer, they can retain the remaining amounts to use for other agricultural inputs or for personal purposes. This move would reduce the surplus of fertilizers that end up in water bodies, thus decreasing soil erosion.
This approach can align with a soil information system, where if the data matches local conditions and crop types, appropriate support can be assigned to each farmer to achieve optimal fertilizer use efficiency. For example, a farmer cultivating rice in nitrogen-deficient soil would receive higher support compared to a farmer growing lentils in a nitrogen-rich area.
Research shows that improving nitrogen use in Indian agriculture can reduce nitrous oxide emissions by at least 30%. These savings are not only about financial outlay but also contribute to combating climate change.
Dynamic Pricing Mechanisms for Fertilizers
The fertilizer support system needs to develop dynamic pricing mechanisms linked to market conditions, environmental factors, and specific crop needs. Through this system, the subsidy provided for fertilizers can be adjusted according to market movements. For example, if the market price of fertilizers increases, the government can raise the subsidy rate to maintain the stability of farmers’ costs. Conversely, if climatic conditions are favorable, the subsidy rate can be reduced to encourage farmers to rely on natural soil fertility.
It represents
This system is an incentive for manufacturers to develop more efficient and environmentally friendly fertilizers, as crop productivity will be improved without excessive reliance on chemicals. While this may require initial investments in research and development, the potential benefits could lead to lower overall costs for farmers and thus achieve greater environmental sustainability.
If it is assumed that the price of fertilizers has risen from 5000 to 6000 rupees per ton, the government can increase support to cover the difference, keeping farmer costs stable. This kind of social price support aligns with sustainable agricultural production.
Integrated Strategies for Soil Quality Improvement
Linking support payments to soil health indicators represents an important step toward better management of agricultural resources. The Soil Health Card system utilizes data collection to help farmers accurately identify the needs of their farm soils. This enables farmers to receive support based on precise data rather than general estimates. For instance, when a farmer requests support, the system will automatically verify their Soil Health Card data. Based on this, soil needs can be accurately calculated, thus adjusting fertilizer support accordingly.
In addition to the direct benefits of supporting farmers, this approach enhances metrics to ensure the sustainability of agricultural production. For example, monitoring fertilizer use patterns can provide important data and flexible policies based on local variables. These strategies rely on modern digital technologies, such as artificial intelligence and big data analytics, to enhance the accuracy of agricultural policies.
Achieving this comprehensive linkage between support and soil quality also requires building a digital platform that aggregates all data and provides agricultural advisory services. This platform will use smartphones or community service centers to provide farmers with the latest information and guidance on the proper use of fertilizers. Providing necessary educational materials on sustainable agriculture enhances knowledge and increases farmers’ ability to make sustainable decisions.
Challenges and Requirements for Achieving Agricultural Sustainability
Despite the effectiveness of the proposed model, there are many challenges in its implementation. One of the major obstacles is the lack of land ownership records, which hinders the implementation of targeted support plans in India. Addressing these issues requires a comprehensive approach; efforts should start in areas with reliable records, such as Punjab, and develop digital systems to document land ownership.
The country also needs more awareness campaigns and practical training to enhance farmers’ ability to adapt to new systems. Additionally, it will require the development of user-friendly applications in local languages, making it easier for farmers to understand and use the systems. These efforts contribute to integrating small farmers and securing new job opportunities and sustainable agricultural practices that help improve food security and enhance economic stability.
Unified Registration System Agreements Tenancy
Proposing a registration system that includes details of lease agreements is highly beneficial for improving the efficiency of agricultural land management and facilitating the legal processes related to land ownership. Although land ownership systems exist in many countries, many farmers lack essential legal documentation, causing them difficulties when conducting agricultural transactions or obtaining government subsidies. Adopting a unified registration system helps document land ownership, allowing governments to utilize available data to assist farmers in subsidy or development project decisions. Providing official documentation can also help raise awareness about land ownership and can contribute to the fruitful development of the agricultural community.
Infrastructure Challenges
Rural communities in many countries face significant challenges related to infrastructure, especially concerning access to the internet and banking services. Effective connectivity is one of the foundations for developing agricultural services, as most modern systems rely on the internet for data collection and distributing grants and subsidies. Proposing cooperation with telecommunications companies to establish public-private partnerships is an effective step to enhance service quality. By creating mobile banking units and digital service centers in remote areas, the digital divide can be significantly reduced, allowing farmers to benefit from government services without the need to travel long distances. An example of this is deploying ATMs in rural locations, which can facilitate direct financial financial payments directly to farmers, enhancing their productive efficiency.
Protection
Data Security and Privacy
The security and privacy of data are critical issues that require special attention when developing any data system involving personal information of farmers. Securing data through end-to-end encryption and enforcing strict controls on access to the actual data can provide the necessary protection against breaches and misuse. Thanks to technological advancements, biometric verification techniques can be utilized to ensure the integrity of the system against any fraudulent activities. Providing legal and transparent contexts regarding data usage policies can also help build trust between farmers and government entities, encouraging them to engage in digital systems. Therefore, working on improving transparency and involving the community in managing their information is a crucial step towards building a reliable system.
Improving Financial Literacy and Financial Inclusion
Challenges related to financial literacy among farmers are significant, as many of them lack basic financial knowledge, hindering their ability to engage with government support programs or effectively utilize financial services. Therefore, it is essential to design and deliver educational programs specifically for farmers, focusing on enhancing their financial skills and knowledge of financial products. Collaborating with local financial institutions can oversee the creation of diverse training programs suitable for different educational levels. Furthermore, it is vital to ensure that government support meets the needs of all farmers, including those who have not opened bank accounts before. Isolating farmers from the financial system may lead to losses and hinder their economic growth.
Improving Grant Calculation and Distribution Processes
The need to improve grant calculation and distribution processes requires greater responsiveness and adaptability to the needs of farmers by utilizing real data from the ground. Adopting blockchain technology for the rapid and transparent transfer of information will expedite the grant process and rectify any potential misallocation of resources. The application of smart contracts on the blockchain can facilitate automatic payments of grants upon meeting certain conditions, such as purchasing verified fertilizers. Once a new oversight model based on real data is adopted, it will enhance financial incentives, helping farmers to make appropriate decisions regarding their farming practices.
Managing Market Fluctuations and Innovating Sustainable Products
The agricultural market today requires effective strategies to cope with price fluctuations that can negatively impact farmers’ income. Implementing mechanisms to monitor prices and set price caps during transitional periods will significantly contribute to achieving price stability. Additionally, enhancing relationships between agricultural cooperatives and manufacturers by encouraging long-term contracts can help ensure the provision of products at fair prices. The industry’s resistance to new shifts requires significant efforts to educate stakeholders about the economic and environmental benefits of adopting new sustainable systems characterized by efficiency and minimal negative impacts.
The Need for a Multi-dimensional Approach to Transform the Fertilizer Subsidy Program
Transforming the fertilizer subsidy program calls for a balanced approach that involves coordinating efforts among various stakeholders. Launching pilot programs in diverse geographical areas will enable understanding the impact of these systems on crop productivity. At the same time, the agricultural information technology sector should collaborate to ensure effective linking of data that can influence support policies. It also requires identifying specific numbers of farmers to participate in these programs to verify their effectiveness. For example, conducting comprehensive studies can assist countries in accelerating transformation plans to improve agricultural land productivity and adapt to ongoing demographic and environmental changes.
Source link: https://www.nature.com/articles/d41586-024-03571-3
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