PRIMARY INPUTS

Introduction
 Green revolution yielded impressive results and in coming decades India was self-
sufficient in food grain production.
 However, it didn’t give Indian people economic food security and food security is still a
big challenge.
 Costly inputs and MSP regimes regularly pushed up prices and rendered them
unaffordable to the poor.

Subsidies on Agriculture Inputs

 Subsidies on inputs have their root in Green Revolution
 On one hand, subsidies keep cost of the food grains at minimum and avoid inflation.
 Second, it ensure income security of the farmer.
 But it also results in overuse of inputs.
 Farmers continue to use skewed mix of inputs as cost are borne by the government.

Seed
Seed is the basic input and the most important catalyst for other inputs to be cost effective.
From the late 1980s, Indian policy has consciously encouraged the growth of private seed
companies. Today, more than 50% of India’s seed production is undertaken in the private sector.
These firms have been demanding favorable changes in seed laws and deregulation of seed
prices, free import and export of germplasm, freedom to self-certify seeds. Many schemes such
as – Rashtriya Krishi Vijas Yojana, Macro Management Agriculture, Integrated Scheme for
Oilseeds, pulses, oil palm and maize, technology mission for cotton, National Food Security
Mission etc provide for subsidized seeds.
New Policy on Seed Development (NPSD) includes permitting 100 per cent foreign direct
investment under the automatic route. The thrust is also on creating a seed bank.
National Seed Corporation
 It is Miniratna Company under Ministry of Agriculture formed in 1963 to produce
foundation seeds and undertake certification activities.
 Various schemes such as ISOPOM, NFSM and National Horticulture Mission are
implemented (partly or fully) under NSC.
 It is also involved in export of seeds, especially to SAARC nations and African countries.
 It maintains a SAARC seed bank.

Irrigation
Irrigation is the artificial application of water crops. If the rainfall is erratic and insufficient then
supplemental irrigation is needed. Introduction of irrigation appreciated land value, it helps in
adoption of innovation like double or multiple cropping.

 Although India is the second largest irrigated country of the world after China, only one-
third of the cropped area is under irrigation.
 Irrigation is the most important agricultural input in a tropical monsoon country like India
where rainfall is uncertain, unreliable and erratic.
 India cannot achieve sustained progress in agriculture unless and until more than half of
the cropped area is brought under assured irrigation.

Pradhan Mantri Krishi Sinchayee Yojana

PMKSY is a centrally Sponsored scheme launched in 2015. The share for centre-state will be
75:25 per cent. In the case of the north-eastern region and hilly states, it will be 90:10.
It is formulated by amalgamating ongoing schemes:-
Accelerated Irrigation Benefit Programme (AIBP) – Ministry of Water Resources, River
Development and Ganga Rejuvenation.
Integrated Watershed Management Programme (IWMP) – Department of Land Resources,
Ministry of Rural Development.
On-Farm Water Management (OFWM) – Department of Agriculture of Agriculture and
Cooperation (DAC)
Its objective are:-

 Convergence of investment in irrigation at the field level.

 To expand the cultivable area under assured irrigation
 To improve on-farm water use efficiency to reduce wastage of water.
 To enhance the adoption of precision-irrigation and other water saving technologies
(more crop per drop)

Fertilizers
Fertilizers are any organic/inorganic, natural/synthetic material used in soil to supplement it with
plant nutrient which are essential for plant’s growth. It is made through industrial processes in
which composition of nutrient is precise and deliberately fixed.

 In India per hectare consumption around is far lower than developed countries.
 Indian soils are deficient in nitrogen and phosphorous.
 Due to rising prices of fertilizer government is promoting organic farming and organic
manure.
 India meets its 80% requirement of Urea (N), while it is heavily dependent on imports for
its potassium (K) and phosphorous (P) fertilizer requirements.

Nutrient Based Subsidy

 Introduced in 2010 with the objective to promote balanced use of fertilizers and to limit
fertilizer subsidy of the government.
 Idea was to fix subsidy as per nutrient in the fertilizer and leave the determination of
prices to suppliers.
 Presently Urea is not covered under the scheme due to political compulsions.
 Consequently subsidized pieces of Urea remained stagnant.
 On the other hand Potassium and Phosphorous are covered under the scheme and a
fixed subsidy as per content of nutrient is given to suppliers.
As a result, actual use of NPK is in ratio of around 8:3:1 while recommended use is 4:2:1. This
additional use of urea doesn’t give any additional benefit to the farmers. Instead this can
degrade soil and harm crops.

Indian Fertilizer Industry

 India is 3rd largest producer of urea after China and USA.
 Production largely state controlled.
 Popular PSUs are – the Fertilizer Corporation of India Ltd., National Fertilizers Limited,
Hindustan Fertilizer Corporation Ltd. etc.