Reforming the fertilizer sector
The Hindu
In order to address the multiple goals of fertilizer policy, India needs to work on four key areas
Since 1991, when economic reforms began in India, several attempts have been made to reform the fertilizer sector to keep a check on the rising fertilizer subsidy bill, promote the efficient use of fertilizers, achieve balanced use of N, P and K (nitrogen, phosphorus and potassium), and reduce water and air pollution caused by fertilizers like urea.
The Economic Survey of 1991-92 noted that fertilizer prices remained almost unchanged from July 1981 to July 1991. The Union Budget of July 1991 raised the issue prices of fertilizers by 40% on average. But from August that year, this was reduced to 30%, and small and marginal farmers were exempted from the price increase. The Economic Survey further noted that even with this 30% increase, fertilizer subsidy remained substantial and needed to be reduced further. Due to opposition to increase fertilizer prices, the increase in the price of urea was rolled back to 17% a year later over the pre-reform price.
With the clock ticking down to the Lok Sabha election counting day on Tuesday, opposing fronts are perceptibly edgy and poised to continue the rancorous skirmishing that marked the campaign season in Kerala. The United Democratic Front, led by the Congress, is seemingly basking in the “interim victory” granted by various exit polls. The UDF discerns that its poll strategy of turning the polls foremostly into a damning referendum on the Left Democratic Front government’s perceived failures rather than BJP’s “divisive politics” at the national level stood a fighting chance of paying off.