Economy and Business

Not For The Farmer

The real beneficiary of Direct Benefit Transfer of fertiliser subsidy will be the industry.

Mar 31, 2017
Fertiliser price has two components — the retail price which is fixed and the subsidy component which is variable.
The industry strategy on fertiliser subsidy is similar to the tobacco industry’s response to cancer claims since 1954. Robert Proctor, a historian at Stanford coined the term “agnotology”, that is, when ignorance is produced and indisputable facts do not win arguments. Proponents of the “Direct Benefit Transfer (DBT) of Fertiliser Subsidy” pilot claim it generates point of sale farmer traceability to stops leakages. This, while good, does not present the complete picture.
The truth is that DBT is about transferring benefits to the fertiliser industry. The fertiliser subsidy DBT pilot project in 17 districts is a well-planned Trojan Horse. It is misleading as it doesn’t incorporate the draconian measures that will eventually be a part of the full roll-out. The final form of the DBT will allow the industry to price fertilisers at will, and the burden of collecting the subsidy will be transferred to farmers. Realising the enormous opportunity, international fertiliser giants like Yara International have started to buy Indian urea fertiliser plants.
Read more at:
Indian Express, March 31, 2017

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