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

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.”   No email

Why India is entering a ‘stagflation lite’ phase

India’s macroeconomic narrative is quietly shifting—from a rare “Goldilocks” equilibrium of stable growth and contained inflation to a more fragile phase where external shocks are beginning to dominate domestic policy outcomes. The numbers still look reassuring at first glance: GDP


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter