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| Year | 2015 50 Downloads |
| Volume/Issue/Review Month | Vol. - VIII | Issue I | January - June |
| Title | Direct Transfer of Subsidies in Fertilizers: Issues and Challenges for Supply Chain |
| Authors | Gangadhar Mishra |
| Broad area | Direct Transfer of Subsidies in Fertilizers: Issues and Challenges for Supply Chain |
| Abstract | Subsidies are necessary evils in our economy and more so in fertilizers. In the present scenario, the Government subsidizes manufacturers of fertilizers to ensure that the end product is affordable for farmers. The quantum of subsidy that manufacturers receive is the difference between their normative cost of production/ Import and the subsidized Maximum Retail Price (MRP)that fertilizers are sold at. India is the 3rd largest producer and consumer of fertilizers in the world and fertilizer contributes to 40-50 percent of agricultural productivity. At Rs 70,967 Cr during FY 2014-15 (RE),fertilizer subsidy is the second major subsidy element after Food subsidy followed by Petroleum subsidy. A subsidy, by its very nature, introduces two or more prices for the same good, and createsincentives for pilferage and diversion. As a result, the underprivileged suffer the most. Ensuringthat goods move in the supply chain at market prices can minimize the incentives for diversion |
| DOI | Agriculture accounts for about one seventh of India’s GDP, provides sustenance to nearly 65% of our Population. Besides, it provides crucial backward and forward linkages to the rest of the economy. Successive fiveyear plans have laid emphasis on self-s |
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| Referenceses | 1. Jinesh Jain et al , “Supply Chain Management: LiteratureReview and Some Issues”, Journal of Studies on Manufacturing (Vol.1-2010/Iss.1), 2010, pp. 11-25. 2. A.K.Srivastava,2012,Agricultural Census-Indian Experience,Ministry of Statistics and ProgrammeImplementation,Government of India,New Delhi ,PP 22-27. 3. Gulati, Ashok (1990), “Fertilizer Subsidy: Is the Cultivator ‘Net Subsidised’? Indian Journal of Agricultural Economics, Vol. 45, No. 1, Jan.-Mar. 1990, pp. 1-11. 4. Government of India (2008), “All India Report on Input Survey 2001-02” Agriculture Census 5. Division, Department of Agriculture & Cooperation, Ministry of Agriculture, Govt. ofIndia, New Delhi. 6. Government of India (2012)Report of the Working Group on Fertilizer Industry for the 12th Plan -2012 13 - 2016 17,Department of Fertilizers, Government of India, New Delhi. 7. Government of India (2014),Indian fertilizer Scenario -2013-14,Department of Fertilizers,Government of India, New Delhi. 8. Interim Report of the Task Force on Direct Transfer of Subsidies on Kerosene,LPG and Fertiliser 9. Ministry of Finance,2015-16,Details of Subsidy included in Annexture -3, Govt of India,NewDelhi, PP 154 10. FMS: monitoring of movement of fertilizers at various stages in the supply chain. ,http://urvarak.co.in/ accessed on 25.05.2015 11. Fertilizer Policy, http://fert.nic.in/ accessed on 07.06.2015 |
