Jaya wants MRP based fertiliser subsidy scheme

Urges PM to scrap Nutrient Based Subsidy Scheme

PTI | June 27, 2012



Slamming the Centre's Nutrient Based Subsidy Scheme (NBS) vis-a-vis fertilizer pricing and "unreliable supply" of fertilizers concerning the Ministry headed by DMK leader M K Alagiri, Tamil Nadu Chief Minister J Jayalalithaa on Wednesday urged Prime Minister Manmohan Singh to scrap NBS and revert to the MRP method.

"The introduction of the Nutrient Based Subsidy Scheme (NBS) by the Government of India from 1st April, 2010, coupled with an unreliable supply of fertilizers to the State is indeed threatening to deprive our farmers of their basic means of sustenance and livelihood," she said in a letter to Singh.

The NBS policy had given the "liberty" to manufacturers and importers of chemical fertilizers to fix the Maximum Retail Price (MRP) based on cost of production or import and "since then, these fertilizer companies have been hiking the retail price of fertilizers at will, causing extreme hardship to farmers," she said.

Consequently, prices of various fertilizers had gone up between 247 per cent to 262 per cent during this time, she said.

"To add insult to injury," the Department of Fertilizers had reduced the subsidy for 2012-13 for DAP to Rs 14,350 per MT from Rs 19,763 fixed last year, and for MOP to Rs 14,400 per MT as against Rs 16,054 per MT last year, she said.

"I understand that the Department of Fertilizer has also proposed a hike of another 10 per cent in urea prices and has planned to cut subsidies further on the pretext of subsidising bio-fertilizers.

Faced with a steep price rise and having to digest a sharp reduction in subsidy, our farmers have been hit hard in terms of economic returns from farming," she said.

She said she had tried to mitigate the "blow" delivered by the Central Government by waiving the four per cent Value Added Tax on the sale of fertilizers providing "some relief" for the farmers.

Holding that the state had faced a short supply of various fertilizers during the Kharif season 2011 she said that the supply of the same continues to be "dismal" and urged for allocation of estimated full requirement of DAP for the kuruvai (short-term) cultivation which was already underway.

"I also request you to issue immediate directions to the Department of Fertilizers to allocate the full requirement of fertilizers for Tamil Nadu so that our farmers are not faced with fertilizer shortages. I shall be thankful for your personal intervention in the matter," she said.

 

Comments

 

Other News

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter