Fertilizer Subsidy Extension: Profit or Protection?

The All India Kisan Sabha (AIKS) criticized the Union Cabinet's decision to extend a special subsidy on Di-ammonium Phosphate (DAP), arguing it benefits corporations more than farmers. The AIKS highlighted rising fertilizer prices, increased import dependency, and alleged profiteering. The government aims to stabilize DAP prices with subsidies.

The All India Kisan Sabha (AIKS) has raised concerns over the Union Cabinet's recent decision to extend a special subsidy on Di-ammonium Phosphate (DAP) fertilizer. The farmers' body claims this move primarily benefits corporate profits rather than safeguarding the interests of farmers.

AIKS highlights the escalation in fertilizer prices, with the cost of DAP skyrocketing from Rs 9,350 per tonne in 2009-10 to Rs 27,000 per tonne in August 2023. There has been a notable reduction in the fertilizer subsidy over the past three years, leading to a cumulative decline of Rs 87,339 crore.

Despite government assurances of no fertilizer shortages, AIKS points to data and farmers' experiences indicating a substantial deficit in availability and rampant black marketing. Additionally, the dependency on imports and the monopoly of a few global corporations are cited as exacerbating factors in the ongoing crisis.

(With inputs from agencies.)