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English Release 1-November 2014
Date Month Year
  • Prime Minister's Office
  • PM greets People of Madhya Pradesh on State’s Foundation Day
  • PM greets People of Haryana on Haryana Day
  • PM greets the people of Karnataka on Kannada Rajyotsava
  • PM greets the people of Chhattisgarh on their Foundation Day
  • Min of Defence
  • Air Marshal B Suresh Takes Over as Senior Air Staff Officer Western Air Command, IAF
  • Ministry of Finance
  • Change in Tariff Value of Crude Palm Oil, RBD Palm Oil, Others – Palm Oil, Crude Palmolein, RBD Palmolein, Others – Palmolein, Crude Soyabean Oil, Brass Scrap (All Grades), Poppy Seeds, Areca Nuts, Gold and Silver Notified
  • Term of the Fourteenth Finance Commission Extended by Two Months up to 31st December, 2014

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Ministry of Chemicals and Fertilizers29-November, 2012 17:51 IST
Study on Fertilizer Subsidy

The Indian Institute of Management (IIM), Ahmadabad in its internal working paper titled “Fertilizer subsidy in India: who are the beneficiaries?” published in July 2009 which can be downloaded from the website (http://www.iimahd.ernet.in/publications/data/2009-07-01Sharma.pdf), made following observations:

i. Fertilizer subsidy is concentrated in few states, namely, Uttar Pradesh, Andhra Pradesh, Maharashtra, Madhya Pradesh and Punjab;

ii. Rice, wheat sugarcane, and cotton account for about two-third of total fertilizer subsidy;

iii. The fertilizer subsidy is more equitably distributed in farm sizes;

iv. A reduction in fertilizer subsidy is likely to have adverse impact on farm production and income of small and marginal farmers;

v. The paper justifies the fertilizer subsidies and questions the rationale for direct transfer of subsidy to farmers.

Department of Fertilizers has already decided to implement direct cash transfer to the farmers in a phased manner. The direct cash transfer to the farmers has following advantages:

a) Direct transfer of subsidy to farmers would help the Government to target small, marginal and other farmers and would bring more transparency in subsidy disbursement;

b) It shall also help in avoidance of diversions of fertilizer for non-agricultural usage and thus better availability of fertilizer to farmers.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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DNM/NSK/NV
(Release ID :89664)

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