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Development of Balanced Nutrient Management Innovations in South Asia: Perspectives from Bangladesh, India, Nepal, and Sri Lanka

Avinash Kishore
International Food Policy Research Institute (IFPRI), NAS Complex, New Delhi, 110008, India

Muzna Alvi
International Food Policy Research Institute (IFPRI), NAS Complex, New Delhi, 110008, India

Abstract/ Executive Summary:

Imbalanced application of fertilizers is a major fiscal and environmental problem in South Asia. We review fertilizer policies and extension efforts to promote the balanced application of nutrients in Bangladesh, India, Nepal, and Sri Lanka and draw 4 important lessons. (1) Fertilizer sector reforms need to be fiscally sustainable and politically feasible. Governments in South Asia have abolished fertilizer subsidies on multiple occasions, only to restore them a few years later. (2) The use of phosphate and potash did not decline much even after a sharp increase in their prices in India in 2011–12. Therefore, rationalizing subsidies, while necessary, may not be sufficient to ensure the balanced use of fertilizers. Changing farmers’ practice requires combining the right incentives with the right information. (3) Soil test based soil health cards (SHC) hold promise, but there is limited evidence on their utility. India’s SHC program had very little impact on fertilizer use. (4) Direct cash transfer (DCT) of fertilizer subsidies can reduce distortions, but Sri Lanka’s experience shows that implementing it is more challenging than universal subsidies. DCT requires the removal of price controls, integration of land records, farmer identity cards, a cash transfer system with universal coverage, and a competitive fertilizer retail sector.

Keywords: Fertilizer subsidy, Soil health cards, Balanced nutrient management, Fertilizer policy, Organic fertilizers, Bio-fertilizers

Location: Bangladesh, India, Nepal, and Sri Lanka

Start Date:

End Date:

Program Area: Crop-Soil-Water Management

Commodity: Fertilizer

Objectives:

This paper reviews some of the major policy changes and extension efforts and synthesizes evidence from stakeholder engagements and a series of national and regional dialogues with policymakers, extension organizations, private fertilizer companies, and farmers on soil fertility to use balanced nutrient management in South Asia.

Methodology:

The article includes the following topics and sub-topic: Key lessons on nutrient management and fertilizer use in cereal-based cropping systems in South Asia: 1. High macronutrient subsidies are common across South Asia: Bangladesh; 2. Abolition of fertilizer subsidies tends to be temporary; 3. Farmers have tepid responses to price changes; 4. Soil health information alone does not change farmers’ practices; 5. Challenges in popularizing custom blends and micro-nutrient fortified fertilizers; 6. Implementing direct cash transfer of fertilizer subsidies requires preparation; 7. Interest in organic fertilizers, the inclusion of pulses, and improved organic matter management is growing

Source of Information: Global Food Security 28(2021) 100464

Article Link (Online Journal): https://doi.org/10.1016/j.gfs.2020.100464

Funding Source:

1. United States Agency for International Development

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Changes in fertilizer policies in Bangladesh, India, Nepal, and Sri Lanka over the last three decades shows that despite all problems, elected governments in these countries are unlikely to abolish fertilizer subsidies. This leaves us with two options for rationalizing subsidies. Allowing a gradual increase in the price of urea over the next few years and transfer the money saved on subsidy to farmers through other channels to garner their support for this change. Designing a successful DCT system requires decisions on the right amount (or range) of transfers, the targeting criteria, and the mechanism to deliver money to farmers given the limitations of data, financial access, and technology in rural South Asia. An important design question is how would farmers’ fertilizer use change if market prices increase after DCT (price elasticity), and would this change affect crop production and productivity? Fertilizer policy reforms in South Asia could be supported by investment in creating a new soil intelligence system that combines higher resolutions digital soil maps with efforts to develop customized recommendations and fertilizer blends. Maps can also aid in improving farmers’ returns by factoring in fertilizer costs and crop prices in the generation of recommendations. In India and potentially in Bangladesh, soil intelligence systems are likely to be feasible using relatively rich data soils resources available with national research programs. Decontrolling fertilizer prices, high-resolution data on soil and crop nutrient requirements, and integrated soil fertility approaches could be combined with the development of customized fertilizer blends and micronutrient coated fertilizers, ultimately making it easier for farmers to act on scientific recommendations.

Knowledge Management: Journal