Is the chemical fertilizer-based food production system sustainable? As a result, what happens to the soil and the larger issue of food security? After a raging debate, the government finally decided to hike the chemical fertilizer subsidy, to catch up with spiralling fertilizer prices in the global market. Also, there is talk about bringing urea under the Nutrient Based Subsidy (NBS) system and decontrolling its prices. Obviously, the fertilizer industry...

A renewal of concern about fiscal management in India is partly due to the resurgence of populism even in a post-election year. Instead of working to reduce the subsidy bill, various political elements seem to be pushing for even higher subsidies. The recent decision of a group of ministers to absorb higher import and production costs of fertilisers by raising subsidy, rather than increasing prices, is just one example. Some...

The government has taken the first concrete step to start disbursing subsidies for things like kerosene, cooking gas and fertilisers to individuals, families and farmers by direct cash transfer. A task force under the leadership of Nandan Nilekani, who heads the Unique Identification Authority of India, has been given the target of getting a pilot going by the end of the year. The transfer system will piggyback on the solution...

There was in fact a successful auction of spectrum — only it was not conducted by the government but by its corporate sector cronies who made a fortune on the deal. On one pronouncement of his, you have to agree with Prime Minister Manmohan Singh. His is not a ‘lame-duck government.' Cooked goose seems the more appropriate soubriquet. However, not a single new scam worth over Rs. 1 lakh crore has...

The Empowered Group of Ministers (EGoM) on fertilisers today approved the prices of complex fertilisers for the upcoming financial year 2011-2012. The EGoM, headed by Finance Minister Pranab Mukherjee, approved the prices of di-ammonium phosphate (DAP), muriate of potash (MOP), sulphur and urea for the purposes of its nitrogen component at $580, $390, $180 and $350 per tonne, respectively. These are the prices at which contracting by the industry would be...