Greenpeace urges Union Finance Minister to invest in organic fertilizers while reforming the Fertilizer Subsidy System

Press release - February 18, 2010
NEW DELHI, India — Greenpeace India today urged the Union Finance Minister to invest in organic fertilizers while implementing the newly proposed Nutrient Based Subsidy (NBS) system. The demand is made on the basis of the recommendations from the public consultations organized by Greenpeace India in collaboration with various local civil society organisations in four different parts of the country. A compilation of the recommendations from these public consultations were submitted to the Union Finance Minister.

Every year Central Government spends crores of rupees on chemical fertilizer subsidies. The budget allocation for 2009-10 for fertilizer subsidies was Rs 49,980 crores. However, over the years, this investment has proven counterproductive as it has led to indiscriminate use of chemicals and subsequent soil degradation and yield stagnation. Union Finance Minister in the last budget expressed concerns over the declining response of agriculture productivity to increased fertilizer usage in the country and proposed the NBS system with a promise that in due course the Government will adopt direct cash transfers to farmers.

"Soil degradation, mainly the decline in soil organic matter both in terms of quality and quantity, is one of the major reasons linked to stagnation and decline in yields. Hence, the NBS with focus on chemical fertilizers alone cannot solve the present crisis. Eco-friendly organic fertilization practices needs to be adopted to rejuvenate the soil and sustain production", said Gopikrishna SR, Sustainable Agriculture Campaigner, Greenpeace India.

"Also dryland farmers and farmers adopting eco-friendly farming practices will not be benefitted if the Government decides to re-invest on chemical fertilizers", he added

During the last quarter of 2009, public consultations were organized in Chitradurga (Karnataka), Wardha ( Vidarbha region of Maharashtra), Udaipur (Rajasthan) and Gangktok (Sikkim). These consultations were aimed at taking the debate to those regions which are historically been denied benefits from one of the largest support to agriculture in annual national budget- the fertiliser subsidy. The first three locations have a dry rain fed region characteristic while Sikkim perched on the Himalayas has a delicate ecology. Non availability of sufficient water in the first three regions and a conscious state policy in the case of Sikkim has ensured reduced chemical fertiliser usage in these regions. More than 1000 farmers, scientists, industry representatives, civil groups and other stake holders participated in these consultations and voiced their views.

SK Sinha, Principal Director, Department of Food Security and Agriculture Development, Govt of Sikkim said, "It is good that Union Government is reforming the subsidy policy. But the subsidy needs to be extended to support organic fertilizers. This will help the farmers of Sikkim, as the state is planning to go completely organic by 2015"

Avinash Kakde, Chief Convenor, Kissan Adhikar Abhiyan, Wardha, Maharashtra  said, "Though government had been doling out thousands of crores in the name of fertilizers subsidies, rainfed regions like Vidarbha are deprived of its benefits as they cannot use chemical fertilizers due to paucity of water during most of the seasons. This historic anomaly can only be rectified by giving subsidies to organic manures that majority of the dryland farmers use."

P Srinivas, Secretary, Sustainable Organic Initiatives for Livelihood (SOIL), Bangalore said, "Organic farmers contribute to the food security of the country with minimal damage to the environment. It is a gross injustice to keep them out of the subsidy system."

Greenpeace India along with Kissan Adhikar Abhiyan (Wardha, Maharashtra) Sustainable Organic Initiatives for Livelihood (Bangalore, Karnataka) and Astha Sansthan (Udaipur, Rajasthan) demand that the fertilizer subsidy of Central Government should be extended to support:

    * Community based systems for production of organic fertilizers/compost by recycling of all household and farm waste produced in the villages .This can find synergy with National Rural Employment Guarantee Scheme (NREGS)

    * Production and distribution of good quality Bio-fertilizers

    * Cultivation of  Green-Manure plants/trees and promotion of Green leaf manuring

    * Cultivation of Nitrogen-fixing crops (leguminous crops like pulses) in at least one season

    * Livestock development as an integral part of the farm  as it is a good source of organic fertilizers

For further information, contact

Gopikrishna SR, Sustainable Agriculture Campaigner, Greenpeace India,
Mob: +91 9900897341, email:

Notes to Editor

1. Report of the Public consultations on Fertilizer Subsidy Reforms can be downloaded from: http://smartfarming.org/documents/jansunvai_report_web.pdf

2. Subsidising Food Crisis, a Greenpeace India report launched on 1 July 2009 can be downloaded from: http://www.greenpeace.org/india/press/reports/subsidising-food-crisis

3. Union Finance Minister’s budget speech (July 2009) can be accessed at http://indiabudget.nic.in/ub2009-10/bs/speecha.htm (Refer para. 34 in this page for his statement on fertilizer subsidies)

Categories