Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee seem all set to introduce the new nutrient-based subsidy (NBS) policy for fertilizer pricing in the Union Budget to be presented on February 26. The move has generated controversy with the Left parties attacking it as anti-farmer and even parties within the United Progressive Alliance government such as the Dravida Munnetra Kazhagam expressing reservations about the impact of the new policy on the farm gate price for fertilizers.




If the sole purpose behind the NBS policy was to promote the balanced use of different nutrients like nitrogen, potash, phosphorous, and sulphur, there would be no reason for anyone to object. The excessive use of urea, for example, has pushed nitrogen in the soil to a high level in many parts of India, affecting crop production. That certain nutrients are used indiscriminately because of price despite their inappropriateness for particular crops, soil and local ecologies is a problem that needs to be addressed, in part, by the revival of agricultural extension services that were one of the first casualties of the reforms process two decades ago. But the proposed fertilizer subsidy scheme stems from another impulse: the desire to decontrol prices.

FOR FULL TEXT OF THIS ARTICLE PLZ CLICK HERE.

FOR MORE READING

ON THE SAME ISSUE