Government of India’s Fertiliser Subsidy bill grosses more than Rs 72,000 crore annually. Despite that, few fertiliser producing units are suffering from losses. Few months back, the Government decided to encourage healthy PSUs to invest and revive three fertiliser units which are on the brink of bankruptcy.
Fertiliser Subsidy | Issues with the decision
In essence, the government’s decision points to an attempt to paper over its apparent inability to push for structural reforms in the fertilizer sector.
Fertiliser Subsidy | Issues with the fertilizer sector in India
That is the reason, too, why no private firm has showed interest in reviving the above mentioned fertilizer plants.
Fertiliser Subsidy | Solutions
Fertiliser Subsidy | Conclusion
People ask questions regarding the increased price for consumers and the general public. Forcing publicly held entities into bad investments and assuredly worsening the soil further is likely to be far costlier. For now, faced with the choice between appearing pro-farmer and being pro-farming, yet another government has chosen poorly.
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