Published on January 27, 2014

Agriculture accounts for one-fifth of our GDP and provides essence to two-third of our population. India’s success in meeting total requirement of food and even in venting out for exports largely depends on the chemical fertilizers. This industry has played a very significant role in Indias green revolution and attainment of self reliance. With growth and advancement of new technology, fertilizer and Agro Pesticide industry is growing with leaps and bounds.

Urea, Phosphate and Potash are some of the major fertilizers used in the agriculture. Recently group of ministers met the fertilizer ministry officials to discuss the subsidy issue. They requested to increase the fixed cost of urea by s. 350 per tonne, step which could lead to increase in the subsidy amount. Government is in mood to increase the fixed cost by Rs.350 but industry related officers has asked the government to rethink their decision. They have requested to double his amount as Urea plant operation and maintenance costs a lot. Government provided a sum of Rs 70,585 crore as fertilizer subsidy in this year budget but the amount allocated remained insufficient to meet the total subsidy requirement. India produces about 22 million tonnes (MT) of urea and imports 8 MT to meet the shortfall.

In a recent development government is probing into the matter of allegedly pay-off to Norwegian firm Yara. A course of corruption has taken place which is under investigation and government has denied on commenting until the investigation continues.