The Hindu Business Line : Abhijit Sen calls for debate on subsidies on food, fertilisers

Delivering a lecture on “Agricultural prices, food security and trade in agriculture” at Administrative Staff College of India here on Friday, Mr Sen said it was time to ponder over the issue of subsidies.

“We have been talking about and not getting solutions on this issue. Whether it is food subsidy or fertiliser subsidy was one of the questions,” he said.

Talking to reporters later, he said subsidies constituted a huge amount. He, however, said that some of it (subsidy) is obviously necessary. “But some of it is creating inefficiencies, too, and much of it could be spent better,” he said.

Mr Sen said it was time to mull over alternatives (to subsidies). Increasing the incomes by way of raising wages could be one such alternative, he said, citing the example of National Rural Employment Guarantee Scheme. Giving money, some felt, was not a solution. “But recognise the principle involved in that,” he pointed out.

“Don’t create subsidies that put too much burden on natural resources,” he said, citing the example of decrease of soil fertility because of fertiliser subsidies.

He said it was a shame on the nation that the nutrition levels in the country were among the lowest in the world.

The production levels of pulses remained stagnant in the last 15 years. One of the reasons for this is that it (growing pulses) is considered not profitable, he observed.

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Abhijit Sen calls for debate on subsidies on food, fertilisers