Govt panel suggests cash fertiliser subsidy of Rs 5,000 per year per farmer

If the government accepts this recommendation, the ongoing practice of transferring subsidy to fertiliser-producing companies will be discontinued

Close on the heels of the Centre passing three ordinances to regulate out-of-ma­ndi transactions, provide a framework for contract farming and amend the Essential Commodities Act, the Comm­ission for Agricultural Costs and Prices (CACP) has recommended a fertiliser cash subsidy of Rs 5,000 per year to farmers. 

The government’s main rate setting panel suggested that this be done in two tranches of Rs 2,500 each in the kharif and rabi seasons.

CACP’s non-price recommendations are largely advisory in nature and the Centre is under no compulsion to impl­ement them. However, if the government accepts this, it can alter the ongoing practice of