ICRIER study calls for fertiliser subsidy cap

A NEW STUDY has recommended direct cash transfer of amounts matching the current fertiliser subsidy levels to farmers’bankaccounts with seasonal adjustments.

- SANDIP DAS

Such a policy will help address the persisting imbalance in use of fertilisers due to a skewed subsidy regime, and put a lid on the steady growth in the government’s subsidy expenditure, according to the study titled ‘healing soils in India’ by ICRIER.

It suggested deregulating prices which would reduce the over attractiveness of urea due to its relatively low price and curb diversion of subsidized urea to non-agricultural uses or across borders, freeing up government savings.