Urea Import Dependency Expected To Increase While P&K Fertilizer Import Dependency To Decrease

The fiscal year 2022-23 (FY23) budget document shows that urea import dependency is expected to increase, while P&K fertilizer import dependency is expected to decrease. Meanwhile, the budget has rationalized the schemes, reducing the number of Centrally Sponsored Schemes to 65 from 130 previously.

The documents cover both Centrally Sponsored Schemes (where the Centre and States share expenditure) and Central Sector Schemes (where the Centre bears the entire expenditure). PM Kisan, food grain subsidy, PM Awaas Yojana, production Linked Incentive (PLI) scheme for various sectors, PM Fasal Bima Yojana, and many others are examples of such schemes.

Urea Subsidy is one such scheme, with a budget of over 63,000 crore. One of the outputs is the total installed capacity of urea production, which has been estimated to be around 284 lakh metric tonnes (LMT), while total domestic production is expected to be over 290 LMT and total urea available at the state level is estimated to be 465 LMT.

Urea Subsidy is one such scheme, with a budget of over 63,000 crore. One of the outputs is total installed capacity of urea production, which has been estimated to be around 284 lakh metric tonnes (LMT), while total domestic production is expected to be over 290 LMT and total urea available at the state level is estimated to be 465 LMT.

Demand to Increase

Total sales are expected to reach 365 LMT, with over 794 lakh farmers purchasing urea. Import dependency is estimated to be 37.62 percent. Data from a similar document for Fiscal Year 2021-22 indicated a 26.39 percent reliance on imports, with total sales and the number of farmers purchasing urea at 361.12 LMT and over 440 lakh, respectively. This means that demand is expected to rise during the next fiscal year, while domestic production is unlikely to change significantly.

According to budget documents, Outlays, Outputs, and Outcomes are being presented to Parliament in measurable terms, bringing greater accountability to the agencies involved in the implementation of government schemes and projects.

Outlay refers to the amount provided in the Budget for a specific scheme or project, whereas Output refers to the direct and measurable product of programme activities, which is often expressed in physical terms or units. The collective results or qualitative improvements brought about in the delivery of these services are referred to as outcomes.

Another scheme mentioned in the document is PM Kisan, which provides eligible farmers with 6,000 in cash in three installments. The budget for the current fiscal year is Rs. 68,000 crore. Over 12.67 crore farmers are to be enrolled under the output heading, while the outcome states that all eligible farmers will receive timely financial benefits.

The Output Outcome Framework aims to foster an open, accountable, proactive, and purposeful style of governance by shifting from outlays to result-oriented outputs and outcomes. This effort will allow ministries to keep track of the scheme objectives and work toward the development goals that they have set for themselves.

The Centre has revamped the entire Centrally Sponsored Scheme mechanism in an effort to improve resource utilization. "The goal is not simply to reduce the number of schemes but to assist states in focusing on schemes that are more beneficial to them rather than distributing resources among all of the schemes," as per Finance Ministry official.

For example, the Agriculture Ministry's ten schemes have been combined into three. As a result, schemes such as the National Food Security Mission, the National Mission on Horticulture, Information Technology, and the Integrated Scheme on Agriculture Census and Statistics, among others, have been incorporated into the Krishionnati Yojana. Similarly, five other Agriculture Ministry schemes have been merged into one called Rashtriya Krishi Vikas Yojana.