Decontrolling Fertiliser Availability in India

• Indian farmers have ramped up acreages in the kharif cropping season due to a bountiful monsoon.

• However, reduced fertiliser availability has dampened their enthusiasm.

• Stocks of urea on August 1 were about 57% lower than a year ago.

• Di-ammonium phosphate (DAP) and even urea and complex fertilisers are in short supply.

• The situation is largely blamed on China, which supplied 21.5 lakh tonnes and 22.9 It out of India’s total 80.1 It imports of urea and 56 lt of DAP respectively in 2023-24.

• The government is also blamed for not anticipating the higher demand, particularly for urea.

• The basic retail price of urea has been unchanged since November 2012, making these fertilisers prone to diversion and black marketing.

• It’s time to decontrol the sector and de-canalise urea imports.

• The government can maintain a minimum stock of major fertilisers to enable market intervention and prevent price gouging.

Impact of Fertiliser Deregulation is important topic for Civil service exam (WBCS).

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