A clearing house of ideas, info, alternatives, on rural India's multiple crises

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<font face="arial,helvetica,sans-serif" size="3">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.</font>
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<font face="arial,helvetica,sans-serif" size="3">Commenting on the Cabinet's decision, one of the farmers in Punjab said, &quot;It is a big setback for the farmers as Punjab yields maximum production.&quot;</font>
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<font face="arial,helvetica,sans-serif" size="3">Farmers are already under so much debt, with the increase in the price of Urea they will be badly hit. Fertilizer is used in all crops. Farmers will be crushed with this hike, commented another farmer.</font>
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<font face="arial,helvetica,sans-serif" size="3">While the government has hiked the price of urea, it has decontrolled prices of all other fertilisers. The subsidy on these will be based on their nutrient content, and not on a per bag basis. </font>
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<font face="arial,helvetica,sans-serif" size="3">This is a first step towards reining in a spiralling fertilizer subsidy bill that has crossed Rs 100,000 crore in 2008-09.</font>
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<font face="arial,helvetica,sans-serif" size="3">Come April 1 and India will shift to a nutrient based fertiliser subsidy regime which means fertilsiers with double dose of nutrients will get additional per tonne subsidy.</font>
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<font face="arial,helvetica,sans-serif" size="3">But the catch here is the retail prices of the subsidised fertilisers at farm gate level will be decided by the fertiliser companies.</font>
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<font face="arial,helvetica,sans-serif" size="3">&quot;The government in order to conform that the farmers are not burdened to pay more has reserve the right to intervene as and when needed. The government's commitment to farmers have been reiterated,&quot; says Information and Broadcasting Minister Ambika Soni.</font>
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<font face="arial,helvetica,sans-serif" size="3">Through the nutrient based subsidy policy, the government hopes to achieve balanced fertilisation and increased farm productivity to help meet different requirements of Indian agriculture.</font>
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<font face="arial,helvetica,sans-serif" size="3">The new policy is also meant to map the actual demand for fertilisers in the country as well as promote realistic pricing of fertiliser products in the international market. Under the new regime, the government is looking to unshackle the fertiliser industry and attract more investments.</font>
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<font face="arial,helvetica,sans-serif" size="3">The government has also hiked the maximum retail price of urea by 10 per cent to Rs 5310 per metric tonne from Rs 4830 per metric tonne.</font>
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<font face="arial,helvetica,sans-serif" size="3">&quot;As far as the increase in urea price is concerned, it will not affect the margins. It will reduce the subsidy, margins will remain unaffected. To that extent the realisation of the market will go up and the realisation of the government will go down,&quot; says Uday Shankar Jha, CMD of Rashtriya Chemical Fertilser.</font>
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<font face="arial,helvetica,sans-serif" size="3">Though the government has stressed that the new policy will not adversely impact the farmers only time will tell how things pan out. An Inter-Ministerial Committee too has been set up for proper implementation of the policy. <br />
&nbsp;&nbsp;&nbsp; <br />
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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.


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	'title' => 'Urea price hike upsets farmers',
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<font face="arial,helvetica,sans-serif" size="3">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.</font>
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<font face="arial,helvetica,sans-serif" size="3">Commenting on the Cabinet's decision, one of the farmers in Punjab said, &quot;It is a big setback for the farmers as Punjab yields maximum production.&quot;</font>
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<font face="arial,helvetica,sans-serif" size="3">Farmers are already under so much debt, with the increase in the price of Urea they will be badly hit. Fertilizer is used in all crops. Farmers will be crushed with this hike, commented another farmer.</font>
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<font face="arial,helvetica,sans-serif" size="3">While the government has hiked the price of urea, it has decontrolled prices of all other fertilisers. The subsidy on these will be based on their nutrient content, and not on a per bag basis. </font>
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<font face="arial,helvetica,sans-serif" size="3">This is a first step towards reining in a spiralling fertilizer subsidy bill that has crossed Rs 100,000 crore in 2008-09.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">Come April 1 and India will shift to a nutrient based fertiliser subsidy regime which means fertilsiers with double dose of nutrients will get additional per tonne subsidy.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">But the catch here is the retail prices of the subsidised fertilisers at farm gate level will be decided by the fertiliser companies.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">&quot;The government in order to conform that the farmers are not burdened to pay more has reserve the right to intervene as and when needed. The government's commitment to farmers have been reiterated,&quot; says Information and Broadcasting Minister Ambika Soni.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">Through the nutrient based subsidy policy, the government hopes to achieve balanced fertilisation and increased farm productivity to help meet different requirements of Indian agriculture.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The new policy is also meant to map the actual demand for fertilisers in the country as well as promote realistic pricing of fertiliser products in the international market. Under the new regime, the government is looking to unshackle the fertiliser industry and attract more investments.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The government has also hiked the maximum retail price of urea by 10 per cent to Rs 5310 per metric tonne from Rs 4830 per metric tonne.</font>
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<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">So, is the fertiliser industry happy about it?</font>
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<font face="arial,helvetica,sans-serif" size="3">&quot;As far as the increase in urea price is concerned, it will not affect the margins. It will reduce the subsidy, margins will remain unaffected. To that extent the realisation of the market will go up and the realisation of the government will go down,&quot; says Uday Shankar Jha, CMD of Rashtriya Chemical Fertilser.</font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">Though the government has stressed that the new policy will not adversely impact the farmers only time will tell how things pan out. An Inter-Ministerial Committee too has been set up for proper implementation of the policy. <br />
&nbsp;&nbsp;&nbsp; <br />
</font>
</p>
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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.


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Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::render() - CORE/src/View/View.php, line 880
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

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