The government's decision to hike urea prices, as part of its move to rationalise subsidies, has upset farmers. Farmers are heavily dependent on urea for their production. They say it will only increase their burden. Commenting on the Cabinet's decision, one of the farmers in Punjab said, "It is a big setback for the farmers as Punjab yields maximum production." Farmers are already under so much debt, with the increase in the...

In a bold move that will not just prune the humongous Fertiliser subsidy bill but also change the face of agriculture, Prime Minister Manmohan Singh, aided by several Cabinet colleagues, today brought in a nutrient-based subsidy (NBS) regime. This will incentivise companies to innovate beyond a handful of products sold in the market presently and offer farmers choice based on soil needs. This is expected to trim the subsidy bill...

The agriculture ministry’s revised farm output projections for this year, indicating just about a 7.5 per cent downturn in foodgrain production despite the worst drought in recent years, lend themselves to some significant inferences. For one, the performance of the crops has turned out to be far better than what was feared. The earlier projections, released in November last, had put the likely crop loss at over 21 million tonnes,...

While the jury is still out on whether Environment Minister Jairam Ramesh did the right thing by putting a moratorium on the use of Bt brinjal, or whether he simply played to the gallery by only taking into account the concerns of the environmentalists, policy-makers need to ponder over some other implications. The introduction of Bt cotton, for instance, led to production more than doubling between 2002-03 and 2007-08, from...

Without Fertilisers, said Normal Borlaug, the world would need two billion people to volunteer to just disappear.  Obviously, it makes sense to increase the supply of Fertilisers rather than to look for those volunteers. Sense, however, is in short supply in India’s Fertiliser policy , and we have a supply shortage of the stuff. The domestic price of Fertiliser has been static since 2002 and the domestic industry has seen...