The Hindu Business Line : Direct fertiliser subsidy to farmers unlikely

THE Union Government is unlikely to implement the proposed recommendation of the Dr Y.K. Alagh committee to start a pilot project for direct distribution of fertiliser subsidy to the farmers.

"What the Alagh committee is saying could be a broad vision. But there are no plans to implement it in the near future," Fertiliser Ministry officials told Business Line.

According to the proposal of the Dr Y.K. Alagh committee that is giving final shapes to the pricing system for controlled fertilisers for the third phase of the New Urea Policy (NEP), the Government is to provide fertiliser subsidy directly to the farmers on an experimental basis in three to five districts spread over five States. Now, it is routed through the fertiliser producers.

The Ministry officials also pointed out the technical difficulties in implementing such a scheme. The fertiliser industry is also in a quandary over the proposal and the Fertiliser Association of India (FAI) is not confident that the scheme will take off.

According to the Director-General of the FAI, Mr B.K. Saha, the proposed scheme would only lead to disruption of work for the farmers, and could also pave way for corruption.

"Where does the farmer have the time? He will buy the fertiliser from his nearest place at full price that is unsubsidised. Now where will he go for his subsidy? I cannot imagine hundreds of farmers queuing up in some counter in a district or tehsil headquarters or a bank with bills as proofs of buying to get their share of the subsidy," he said.

"Also, the distribution of small sums of money to thousands of farmers in a district would require huge volumes of clerical work at the Government level. And this could create scopes for unfair practices and corruption. However, we are yet to have full details of the plans," he said.