Jan 1 1970

Sep 7 2016

I think there is little understanding of how the whole system works in the government.

Sep 7 2016

How is it a direct transfer to the farmer? For the scheme to be successful, the farmer will have to get the subsidy directly in his bank account but the problem is that the difference between the subsidized and non-subsidized rate is so high, that the farmer cannot afford to buy it unless the subsidy is given upfront. But if a one-time subsidy is given in advance to him, what guarantee is there that he will use it to buy fertilizers?

Sep 7 2016

The Point of Sale concept is very good. There will be hiccups initially but if that gets sorted out, then it will be an easy way of doing business.

Sep 7 2016

On the subject of quick dispensation of subsidy: it is unlikely to happen. If the finance ministry does not allocate funds, how will they process the subsidy in seven days? It will be a promise that will be broken for sure.

Sep 7 2016

Eventually it will be the farmer who will pay more. The manufacturers of decontrolled fertilizers will push the interest cost of higher working capital to the farmer. What else can they do?

Sep 8 2016

Why can't the subsidy be given at the level of the retailer? In any case, he gets credit from the company. So when a sale is registered, then the government can directly transfer the subsidy money to the retailer. It is a simple solution. It does not involve the industry.

Sep 8 2016

As in case of decontrolled fertilizers where the increase in cost of product due to increase in interest cost of higher working capital may be passed on to farmers. But what about the urea price, that is controlled. It is the urea producer who will bear the heat of increase in interest cost due to higher working capital. Since, urea sale is seasonal and urea production is a continues process.

Sep 10 2016

Thankfully, it is only at the pilot stage and not a policy decision. There will of course be course correction should there by problems on the way. Farmers are a very important constituency and no one be on their wrong side.

Sep 16 2016

Firstly the government must transfer subsidy to the manufacturer/importer as sales occur in a pilot project. And there is another simple formula to give subsidy. What the government can do is to subsidy on agricultural products in terms of every acre of average yield by proportion to average use of various fertilizers in an acre.

Feb 18 2017

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