
To check diversion, Centre plans limit on purchase of fertilizers by farmers- Merits and demerits
India is being a country provided indirect subsidy to markets, its often lead to diversion and counterproductive nature. Governments move to limit amount of fertilizers each farmers can buy during a cropping season raised mixed responses.
Merits of Centre’s plans limit on purchase of fertilizers by farmers
- Prevents smuggling to Bangladesh & Nepal by neighboring states like UP and Bihar.
- Reduce pressure on farmers to buy for others.
- Reduce burden on public exchequer.
- Reducing fiscal deficit.
- Prevents diversion to plywood mfg, milk industry..etc
- Reduce degradation of soil due to overuse.
Demerits of Centre’s plan limit on purchase of fertilizers by farmers
- Land less farmers left out
- One rule for all not applicable as different crops have different requirements.
- difficulty in implementation of quota due to poor land records
- Prevalent corruption and nexus
- Threaten food security if yield decline due to lack of fertilizers.
- Farmers with fewer requirements can still divert fertilizers.
Even after allotting more than Rs.5000 crore for subsidy, Indian farmers suffer. Governments plan to limit subsidy is a right step is taken precautions to ensure delivery for all deserving farmers.