Food and Fertiliser Subsidy Reform: Merger With PM-Kisan Idea
Why in the news
Ahead of the 2026 Union Budget, attention turned to rationalising food and fertiliser subsidies by folding them into a bigger PM-Kisan, to cut distortions.
Key facts
- Share of budget: about 8.5%.
- PM-Kisan DBT: ₹3.7 lakh crore to 11 crore farmers.
- Agricultural subsidies lower input costs (fertiliser, power, seeds) or steady prices through MSP.
Why reform
- Damage from overuse of urea and chemical fertilisers.
- Cropping tilted to cereals over pulses and oilseeds.
- Fiscal strain from rising subsidy bills.
Why subsidies matter
| Role | Example |
|---|---|
| Food security | NFSA and PMGKAY: 5 kg free grains for 813 million people |
| Global shocks | ₹3,500/t DAP subsidy in 2025 to steady MRP |
| Diversification | Mission on Pulses buys 100% of tur, urad, masur at MSP; self-sufficiency aimed by 2027 |
| Technology | 40-50% subsidy on drones and sprayers under Sub-Mission on Agricultural Mechanization |
| Climate resilience | PM-KUSUM solarised 49 lakh pumps by early 2026 |
Reform steps
- ₹2,925 crore to computerise 80,000 PACS.
- Nutrient-Based Subsidy expansion with magnesium and zinc fortified fertilisers.
- PM-PRANAM: states get 50% of savings from lower chemical fertiliser use.
- DBT under PM-Kisan to reduce leakages.
Exam angle
- Savings-sharing scheme: PM-PRANAM.
- Solar pump scheme: PM-KUSUM.