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Q. Fertiliser imbalance: Why there is need of deregulation of pricing of fertilisers?
Apr 11, 2016 Related to : GS Paper-3

Ans :

Introduction-

Recently central government hold a meeting to draw a plan to revive closed-down fertilisers plants like Hindustan Fertiliser Corporation (HFC), Fertiliser Corporation of India (FCI) etc. Government is planning to assign the task of revival to Profitable PSUs. Excessive utilisation of urea in India is deteriorating the soil health and excessive subsidy also causing heavy burden on exchequer. Hence revival of these plants won’t address the moot issue; there is need of deregulation of pricing.

Presently prices of urea is heavily subsided (about 70%) against other nutrients like phosphorus, potassium and sulphur (about 30-35%). This subsided policy compels farmers to use urea in place of other nutrients. Such excessive usage has created following problems.

  • The soil health has been continuously deteriorating due to excessive utilisation of urea in place of other essential nutrients like nitrogenous, phosphoric potassic.

  • This poor soil health has negative impact on agricultural output and income of farmers.

  • Every year about 40000 crores of money is being spent on subsidies and it is causing heavy burden on exchequer.

  • It also has negative impact on environment and ecology.

Deregulation of fertilisers pricing will address the above problems.  Hence government should deregulate the fertiliser pricing and let the market players produce customised products with differentiated prices and serve the vast market that exists in India. Such move allows farmers to choose the right fertiliser, improve soil health and also productivity. But it may create problems to farmers like increased input cost. But with right policy and support government may address these issues.

Related Article- Click below link.

www.drishtiias.com/editorial-analysis-Need-based-usage-model-of-fertilisers-is-required-to-overcome-fertilizer-imbalance-and-its-ill-impact-on-farm-productivity-Comment


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