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.

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