FERTILISERS HAVE ALWAYS OCCUPIED A place of eminence in policy arena. Keeping their importance in view, fertilisers were brought under Essential Commodities Act in 1955. In its concern to ensure equitable distribution of quality fertilisers to the farmers in time across the country and at affordable prices, the Government has been exercising controls on manufacturing, imports, distribution, movement and prices, etc. of fertilisers from the very beginning. The measures adopted by the Government from time to time have paid dividends. The industry grew up and the consumption increased manyfold resulting in enhanced agricultural production. However, of late, the controls have become excessive. The 'cost plus' method and 'whichever is less' approach of the Government have left no scope for improvement in efficiency and innovations. Fiscal management of subsidy, which is nothing but reimbursement of difference between the cost incurred by the industry and the maximum price fixed by the Government has also become unmanageable. This is due to huge increase in subsidy amount in the recent past. Ultimately, the existing system of routing of the subsidy through the fertilizer industry is working in its detriment. The fertiliser industry is not only suffering financially but also earning a bad name. In fact, the industry is paying out of its own pocket to meet this obligation. The industry first passes on the subsidy to the farmers at the time of selling its products and gets reimbursement from the Government at a later stage. Industry, therefore, has earnestly requested the Government of India to free it from the controls and let it operate like so many other industries in the country. Fertiliser Industry welcomes the statement made by the Hon'ble Finance Minister in his budget speech (2009-10) of nutrient based subsidy with total decontrol in due course.
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