The Centre has to address serious issues in the farm, fertiliser and plantation sectors to enhance the sustainability of the primary sector, say industry representatives.

Imbalanced application of fertilisers, delays and leakage in subsidy payment to farmers and the low percentage of assured irrigation in cultivated areas are serious concerns, according to A Vellayan, Executive Chairman, Murugappa Group.

Urea price has to go up at least 15 per cent as it is highly subsidised and is at one-fourth the world price. This leads to excessive use of urea and imbalanced fertiliser application. Prices have to be increased gradually over the next four years and subsidy levels reduced.

The subsidy now being routed through the fertiliser companies can be paid to farmers directly. The industry is an ideal subject for direct transfer of subsidy which will not only stop leakage but also avoid unnecessary paper work.

The procedure to reclaim subsidy and freight in the phosphatic sector is cumbersome. A weighted average freight can be applied and merged into the subsidy for one-stage disbursement, said Vellayan.

Single superphosphate (SSP) is the appropriate fertiliser for small and marginal farmers but the subsidy is not conducive to the promotion of SSP usage. At least 3 million tonnes of SSP can be used in addition to the current levels.

This will bring down imports of diammonium phosphate by at least 2 million tonnes annually, he said.

A majority of farmland is rain-fed or monsoon dependent, as irrigated land is just 20-25 per cent of the cultivated area. Investment in linking rivers and building canals should be part of the Budget to ensure an increase in irrigated areas every year.

Plantation sector

The Association of Planters of Kerala has sought amendments in the Plantation Labour Act, which mandates the provision of housing, sanitation and medical care facilities to workers. But existing government schemes can be extended to address these needs in the plantation sector also, the association said.

George Valy of the Indian Rubber Dealers Federation has urged the Centre to enhance the replanting subsidy to ₹1 lakh per hectare from the present ₹20,000.

Farmers have given up tapping rubber because of aged trees and dwindling prices. A strategic reserve of 1 lakh tonne of rubber has to be created, as it is a major industrial raw material, he said.

C Vinayaraghavan, President of the Association of Planters of Kerala, said low international prices, unbridled imports and a gap in production-consumption have impacted natural rubber prices.

A temporary ban on imports is needed till a safeguard duty is levied.

Value-added products

Gulshan John, Chairman of the All India Spices Exporters Forum, said programmes to promote value-added tea, coffee and spices are needed.

The forum demanded a 5 per cent increase in incentives for value-added spice exports, which is now treated on par with raw spice.

Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India, called for incentives to enhance productivity and area of production. Domestic production is stagnating at 7 to 7.5 lakh tonnes and India has to depend on imports, he added.

The export incentive of 2 per cent under the Merchandise Exports from India Scheme should be hiked to 5 per cent and market development assistance provided, he said.

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