The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi recently approved a “unique package of innovative schemes for farmers” with a total outlay of Rs.3,70,128.7 crore.
The bouquet, said the Government, is focused on the overall wellbeing and economic betterment of farmers by promoting sustainable agriculture.
The initiatives will boost farmers’ income, strengthen natural and organic farming, rejuvenate soil productivity, and ensure food security, according to a statement from the Ministry of Chemicals and Fertilisers.
Urea subsidy continues
Among CCEA approvals was the continuation of the urea subsidy scheme. An amount of Rs. 3,68,676.7 crore has been committed for urea subsidy for three years (2022-23 to 2024-25). This is apart from recentlyapproved nutrient based subsidy of Rs 38,000 crore for Kharif season 2023-24.
Farmers can thus continue to avail urea at the same price of Rs 242 per 45 kg bag (excluding taxes and neem-coating charges). The actual cost of the bag comes to around Rs 2,200, said the ministry statement.
Meanwhile, the geopolitical situation has escalated prices of raw material. Fertiliser cost has been increasing globally over the years.
In India, it has been an effort to keep farmers somewhat protected from this price rise. This is done through fertiliser subsidy. Subsequently, fertiliser subsidy has further been increased from Rs 73,067 crore in 2014-15 to Rs 2,54,799 crore in 2022-23.
Nano urea plants
Also, by 2025-26, the Government also intends to commission eight nano urea plants with production capacity of 44 crore bottles, which is equal to 195 LMT of conventional urea. These plants will add to the country’s progress to become atmanirbhar in Urea by 2025-26.
The Union Government has also approved Rs 1,451.84 crore for market development asistance (MDA) in promoting organic fertilisers from GOBARdhan Plants.
The GOBARdhan initiative provides technical assistance to every district. It also comprises a financial support of up to Rs 50 lakh per district to achieve safe disposal of cattle and organic waste.
The scheme supports villagers to safely manage organic, agriculture, and cattle waste. It also helps them convert their waste to wealth, improve environmental sanitation and curb vector borne diseases.
Urea Gold introduced
The Government package also mentioned the introduction of sulphur-coated urea (Urea Gold). It is economical and efficient than the currently used neem-coated urea. It will address sulphur deficiency in soil, save input costs for farmers and raise production and productivity.
Meanwhile, about one lakh Pradhan Mantri Kisan Samruddhi Kendras (PMKSKs) have come up in the country where for the convenience of farmers, farm inputs are provided as a one-stop solution for all their needs.
Sugarcane FRP hike
The CCEA also approved fair and remunerative price (FRP) of sugarcane for sugar season 2023-24 (October-September) at Rs.315 per quintal for a basic recovery rate of 10.25 per cent.
It has also been approved to provide a premium of Rs.3.07 per quintal for each 0.1 per cent increase in recovery over and above 10.25, and reduction in FRP by Rs.3.07 per quintal for every 0.1 per cent decrease in recovery.
The Government has also decided that there will not be any deduction in case of sugar mills where the recovery is below 9.5 per cent.
