Subsidy Riddle

Direct transfer of fertiliser subsidy to farmers is a bad idea, says a study by IIM, Ahmedabad

| January 25, 2010


An IIM Ahmedabad report finds that disparity in the distribution of fertiliser subsidy in different states
An IIM Ahmedabad report finds that disparity in the distribution of fertiliser subsidy in different states

Good politics is bad for economics, and this is true of fertiliser subsidy. Driven by the political compulsion, fertiliser subsidy has come under severe criticism from all quarters.

The IIM Ahmedabad carried out a study which shows that fertiliser subsidy has increased significantly since 1991. It finds huge disparity in distribution of  subsidy in different states.

The UPA government in its budget for 2009-10 proposed a system of direct transfer of fertiliser subsidy to farmers. However, this study says that the proposed policy is misconceived and inappropriate.

To read entire report, log on to: http://www.iimahd.ernet.in/publications/data/2009-07-01Sharma.pdf
 

Comments

 

Other News

Bullet Train Project: Third mountain tunnel breakthrough achieved

A major engineering milestone has been achieved in the Mumbai–Ahmedabad Bullet Train Project with the successful breakthrough of the third mountain tunnel (MT-07) at Ambesari village in Dahanu Taluka of Palghar district, Maharashtra.   With this achievement, three mountain

Supreme Court gets five new judges

Five new judges were appointed to the Supreme Court of India on Monday. "Vide Notifications of even number dated 01.06.2026, in exercise of the powers conferred by clause (2) of Article 124 of the Constitution of India, the Hon’ble President of India is pleased to appoint (i) Shri

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399  

Strong El Nino threat over India`s monsoon, food & water security

India is heading into the southwest monsoon season this year under the shadow of a rapidly strengthening El Nino, with meteorologists warning that the climate phenomenon could significantly disrupt rainfall patterns, intensify heat stress and place additional pressure on the country’s agriculture-d

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699  

India stopped jailing people for paperwork. Now comes the hard part

A small pharmacist in Rajkot neglects to change a notice in his store under a little-known clause of a public health law. This was not only a non-compliance matter, but also a criminal offence, and a jail sentence was the punishment under the old system. Not a fine. Not a warning. Jail. Now scale





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter