The Hindu Business Line : Fertiliser subsidy

This refers to the editorial, "Going direct" (Business Line, March 5). The failure of the government to make full disbursements of indirect subsidies to the agricultural sector is no surprise.

Perhaps agriculture is the only sector where one can safely play hide and seek with funds, be it the politicians or the officials. Every Budget seems to project sops for the sector though they remain promises on paper forever. The farmers, already in deep distress, are going to be further hit by rising fertiliser costs.

The present idea to grant subsidies direct to the farmers may work well to a certain extent, if there is the right political will and honest and committed people in the delivery chain.

While developed countries disburse nearly 70 per cent of the farming costs to the farmers as subsidy, countries such as India think in terms of reducing farming subsidies, and quote World Bank guidelines in defence. It is gratifying that the Finance Minister has at last recognised the role of agriculture, at least in this Budget. The latent potential of the agri sector to kick off growth in other sectors has been highlighted in several debates on the Budget. But will all promises to the ailing sector be kept and farmers' suicides prevented is the key question.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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