Editorial 1 : All is not well with Soil
Context: Fertiliser subsidy is causing a skewed nutrient profile. For farm productivity and human health, this must be addressed.
Introduction: 10th World Soil Day was observed on 5 December 2024 with the theme Caring for Soils – Measure, Monitor, and Manage. It was appropriate as our soils are becoming deficient in the essential nutrients needed for healthy soils.
Sustainable Fertiliser and Agriculture
- The role of the fertiliser industry is critical in ensuring that our soils are healthy and well-nourished.
- While high-yielding seeds of various crops are a catalyst of change in agriculture, they cannot deliver high productivity without nutrients, which are provided by the fertiliser industry.
Indian soils and Role of the Fertiliser Industry
- Nutrient Deficit Indian Soils
- Less than 5% of Indian soils have high or sufficient nitrogen, only 40% have sufficient phosphate, 32% have sufficient potash and just 20% are sufficient in organic carbon.
- Our soils also suffer from a deficiency of micronutrients like sulphur, iron, zinc, boron, etc.
- These deficiencies range from moderate to severe.
- The Indian fertiliser industry has a massive and crucial role to play.
Fertiliser Industry's Role in Agricultural Success
- Achievements
- Ensures timely supply of essential nutrients like nitrogen (N), phosphate (P), and potash (K).
- Contributed to India becoming a net exporter of agri-produce and the largest rice exporter globally.
- Supported high productivity even during the pandemic years (2020-2023), enabling large cereal exports.
- Challenges
- Significant imbalances in the usage of N, P, and K due to distorted pricing policies.
- Overuse of nitrogen (N) in states like Punjab and Telangana leads to greener crops but lower grain yields.
- Nutrient Use Efficiency (NUE) is only 35–40%, with a large portion of nitrogen contributing to environmental pollution.
Issues With Current Fertiliser Policy
- Subsidy System
- Fertiliser subsidies amounted to ₹1.88 lakh crore in the last fiscal year, nearly 4% of the Union budget.
- Urea receives the largest subsidy, with prices controlled at approximately $70/tonne, the cheapest globally.
- Imbalanced Usage
- Overuse of nitrogen due to its low price, compared to phosphate and potash.
- It results in:
- Poor crop productivity.
- Increased atmospheric nitrous oxide emissions, contributing to environmental harm.
- Diversion of 20–25% of urea to non-agricultural uses or neighbouring countries.
Solution for Sustainable Fertiliser Use
- Deregulation of Fertiliser Pricing
- Remove price controls on fertilisers to ensure better market efficiency.
- Encourage innovation in fertiliser production and balanced usage of nutrients.
- Direct Income Support for Farmers
- Replace subsidies with digital coupons for farmers to purchase fertilisers as needed.
- Promoting Micronutrients
- Increase focus on micronutrients like sulphur, iron, and boron for improved productivity and soil health.
- Comprehensive Data Utilisation
- Triangulate data on fertiliser sales, soil health cards, PM-KISAN, land records, and crop patterns.
- Use this data to develop precise and farmer-friendly fertiliser management policies.
Benefits of Reforms
- For Farmers: Higher productivity and profitability due to better nutrient management.
- For the Environment: Reduced nitrous oxide emissions and healthier soils.
- For the Fertiliser Industry: Improved efficiency, competitiveness, and potential to grow like the pharma industry.
Way Forward and Conclusion
- Reforms will require a lot of preparation. Triangulating data on fertiliser sales, soil health cards (SHC), PM-KISAN, land records, crops grown, bank accounts and mobile numbers of farmers would be needed.
- The Union government will have to communicate that these reforms are in the farmers’ interest.
Editorial 2 : Unfreezing Ties
Context: A broader political dialogue between India and China is set to resume. It will bring opportunities for India, and challenges.
Background: Four years of chill in bilateral ties have followed Beijing’s incursions in eastern Ladakh during the spring of 2020 and the death of several soldiers in the Galwan Valley clashes of that summer.
Current Developments
- Unfreezing the relationship has been hard, but India held steady with its demand for restoring peace and tranquillity on a border disturbed by the sudden Chinese decision to move a large number of troops to the Line of Actual Control in violation of previous agreements for military confidence-building.
- China finally relented to complete the military disengagement from the six friction points on the LAC just before Prime Minister Modi met Chinese President Xi Jinping on the margins of the BRICS summit in October.
- The two sides are now set to resume talks at the level of foreign secretaries and special representatives, signalling the resumption of a broader political dialogue.
India’s Approach and Concerns
- Restoration of Peace on the Border
- India demands a transition from disengagement to de-escalation, involving troop withdrawals to traditional peacetime locations.
- Dismantling of infrastructure built to support military deployments is a key Indian objective.
- Geopolitical and Security Priorities
- India seeks sustained peace and tranquillity on the LAC as a precondition for improved relations.
- Military preparedness remains a cornerstone of India’s strategy given lingering distrust.
China’s Approach and Economic Interests
- Focus on Economic Normalisation
- China is keen to restore full-scale bilateral commercial ties and wants India to lift restrictions imposed in 2020.
- The Chinese strategy prioritizes economic engagement to enhance interdependence and influence.
- Challenges for India
- Indian businesses reliant on cheap Chinese inputs are pushing for relaxed trade restrictions.
- However, unregulated trade with China could harm domestic manufacturing and exacerbate the trade deficit, currently over $100 billion annually.
Strategic Considerations for India
- Balancing Military and Economic Objectives
- For now, India prioritizes military de-escalation over deeper economic engagement with China.
- Steps like restoring direct flights, easing visa issuance, and regional consultations are preferred for gradual normalisation.
- Global Geopolitical Environment
- The ongoing US-China trade war could influence India’s strategy; aligning too closely with China might expose India to vulnerabilities.
- India’s focus should remain on reducing dependence on Chinese imports while diversifying economic partnerships.
Recommendations for India
- Maintaining Cautious Optimism: Engage China politically and economically only after concrete progress on border issues.
- Protect Domestic Industry: Implement barriers against Chinese dumping and promote local manufacturing.
- Leverage Global Dynamics: Capitalise on the US-China trade conflict to position India as a reliable alternative in global supply chains.
- Strengthen Military and Infrastructure on the LAC: Continue investments in border security and critical infrastructure to ensure readiness for any future provocations.
Conclusion
India’s focus for now should be on military de-escalation on the border and negotiating small steps such as restoration of direct flights, easier grant of visas, and consultations on the changing regional and global geopolitical environment.