Economic analysis of chemical fertilizer use in India

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Date
2023-02
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CCSHAU, Hisar
Abstract
Chemical fertilizers have played a vital role in the success of India's green revolution and consequent self-reliance in foodgrain production. the effectiveness of fertiliser in enhancing crop productivity is apparent, excessive fertiliser usage has negative environmental repercussions because nutrients pollute the hydrosphere or biosphere. In view of the aforementioned facts, the current research will focus on an economic analysis of chemical fertiliser usage in India the study used both primary and secondary data to fulfil the objective of the study. The present study was conducted in four districts (two from each zone) of Haryana, namely Bhiwani, Faridabad, Fatehabad and Yamuna Nagar districts, based on the fertilizer consumption under major crops during 2018-19. Both primary, as well as secondary data, were used for attaining the objectives of the study. The growth of consumption was positive during the period from 1990-91 to 2019-20 Thus, there was considerable increase consumption of fertilizer. Except from the period 2010-11 to 2019-20, phosphorus and potash show negative growth rate. Intensity of fertilizer use was highest in Bihar followed by Pondicherry, Punjab and Haryana. Highest production of fertilizer was in Uttar Pradesh Followed by Maharashtra, UP, MP and Punjab. Whereas Haryana was at rank 13 with the consumption of 1410.45 thousand tonnes in 2019-20. There is increasing trend in the consumption of Urea, DAP, MOP and CAN except CAN. The Paddy wheat cropping system was one of the most prominent cropping systems. Cotton wheat cropping system was second most preferred system followed by the farmers. In BR  W cropping system there was negative technology gap, in case of nitrogen and phosphorus there was negative and low technology gap, whereas in case of potash technology gap was Medium negative. In NBR  W cropping system there was negative and very low technology gap in case of nitrogen and phosphorus, whereas in case of potash technology gap was Medium and positive. In all other cropping system technology gap was medium to high and positive which means the consumption of fertilizer is low as compare to recommendation. Area Under HYV, cropping intensity had signification effect on consumption of fertilizer in Haryana where as in case of Yamuna Nagar and Faridabad price of potash was found to be negative and statistically significant. The results depicted the government policy impact the consumption on fertilizer which affect the balance use of fertilizer. From the results we conclude that policy has direct impact on prices of fertilizer which affect the purchasing power of farmers.
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