The Planning Commission of India has recommended moving to a nutrient based subsidy (NBS) on fertilisers in the country.

The panel also said that there should be a balance between different kinds of crop nutrients so that the soil health can be maintained. Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the commission is in favour of nutrient based subsidy in the country.

While speaking at a conference of State Planning Commission and boards he said that the prices of fertiliser should be variable in fixing NBS in order to balance the different kinds of nutrients so that the consistency can be maintained.#

The prices of 22 grades of phosphatic and potassic fertilisers have been decontrolled since the introduction of the NBS regime on April 1, 2010. Teh government still compensates firms for selling indigenous or imported crop nutrients at a price that is lower than market prices to the farmers. He also said that the rate of subsidy and its phasing out should be determined after balancing

"Once you have balanced it, the nutrient based subsidy, you can then impose whatever rate of withdrawal you want. You want to phase it out in one year, you want to abolish it straight way, you want to phase it out in four years... So its a big and complex job but it is an important job," he said.