'Subsidies can't be rolled back abruptly, reforms will be gradual'

Subsidies continue to serve critical national needs, and cannot be withdrawn abruptly, expenditure secretary V. Vualnam said in an interview, as he outlined a gradual course correction in India's subsidy and spending framework.

- Dhirendra Kumar & Vijay C Roy

The government aims to achieve this rationalization of subsidies by maintaining constant engagement with the ministry of agriculture, the department of food and public distribution, the department of fertilizers, and the Indian Council of Agricultural Research (ICAR), he said.

Food subsidies, he said, were essential to ensure food security for poorer sections of the population across different regions, even as declining poverty levels were acknowledged. Similarly, fertilizer subsidies reflected a firm government commitment to ensure adequate availability of fertilizers for farmers, he told Mint.

At the same time, the government is exploring ways to optimize fertilizer use through better data and technology, amid concerns about overuse in certain regions and the resulting impact on soil health.