Financial Daily from THE HINDU group of publications
Tuesday, Aug 31, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 31, 2004 |
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Opinion
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Letters Fertiliser reforms
This is with reference to "Fertiliser reforms"(Business Line, August 28). It is unclear why the Government still wants to have control on urea. The price subsidy lures farmers to use more urea than required, which results in luscious green vegetative growth but lesser yield. It also leads to soil nutrient imbalance. When the Government is de-controlling all businesses where there is no shortage, the same rule should apply to urea also. The policy reforms should compel the domestic plants to go for full capacity utilisation and simultaneously encourage cheaper imports. This brings an open market competition where prices get reduced naturally on account of supply-demand forces sans subsidies. This goes in sync with the objective of supporting farming with cheaper inputs. Huge spending on input subsidies is not affordable. A slow move towards complete de-control will prepare India to tune itself to the WTO recommendation of shifting focus from direct subsidies to supporting farming through improved rural extension, infrastructure, R& D and so on. This will lead to sustainable growth and increased global competitiveness in long run. B. N. Hareesh Hyderabad
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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