fractured earth

Home » Rural India » fazed out. india’s fertiliser ministry and phase two in fert cash transfers

fazed out. india’s fertiliser ministry and phase two in fert cash transfers

and now, another update on how india’s journey towards fertiliser cash transfers is unfolding. see it here.

some thoughts on this, though. this january, ET had reported that companies, wholesalers and retailers alike were nervous about the fertiliser ministry’s plans to reroute subsidy from companies to retailers. You can read about that, with context and all, here. well, the ministry has finally decided to scrap this intermediate phase, which was slated to start this kharif. this means the existing subsidy regime — where companies get the subsidy — will continue till it is possible to transfer the subsidy to farmers directly. for that to happen, they will all need to have UID numbers.

that said, this decision to scrap this intermediate phase is going to offer little more than short term relief to farmers and retailers. partly because once cash transfers start flowing to farmers — retailers/wholesalers/farmers will have to buy at full price anyway. also, more tangibly, cash transfers or no cash transfers, in the last few years, fertiliser prices have risen precipitously. see the point made by JNU professor himanshu in the last paragraph.

“While the price of urea has more or less stayed around Rs 500 over the past 6-7 years, that of DAP, for instance, has climbed from Rs 1,050 in 2010-11 to Rs 1,500 by June 2011 and is currently at Rs 1,900. It will definitely increase further.”

this precipitous rise in fert prices means we are using more urea than anything else. which takes us back to the crisis in indian agricultural soils. another thing the fert ministry continues to turn a nelson’s eye to.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s