The Economic Survey 2026 recommended raising the price of urea to discourage its overuse.
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Economic Survey 2026: Raise urea price, provide direct benefit transfers to farmers to curb overuse
The Economic Survey 2026 has recommended increasing urea prices and implementing Direct Benefit Transfers (DBT) to farmers. This policy aims to curb the prevalent overuse of urea, which has significant environmental and economic implications. A critical challenge highlighted is the tenancy issue, where DBT benefits might inadvertently accrue to landowners instead of the actual tenant farmers, thus impacting the scheme's effectiveness and requiring careful implementation strategies.
Source: Down To Earth. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.
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Exam-ready takeaways
It also suggested providing Direct Benefit Transfers (DBT) directly to farmers as a compensatory measure.
The primary objective of these recommendations is to curb the overuse of urea in agriculture.
A significant scheme design challenge identified is the issue of tenancy in agricultural land.
The tenancy challenge could result in DBT benefits accruing to landowners instead of the actual tenant farmers.
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