- In absence of a well-planned Govt. policy, top fertilizer manufacturers like Tata and Birla are mulling upon exiting the industry.
- Major reasons are excess focus and usage of urea, delayed subsidy payments, non-availability of domestic natural gas and inconsistent Govt. policy.
- Urea is highly subsidized which makes the prices of decontrolled NPK fertilizers 3-4 times higher, thereby, decreasing their consumption.
- Though the Govt. allowed gas pooling recently, but the entire benefit goes to urea industry and not to NPK manufacturers.
- Without a developed fertilizer industry, schemes like Soil Health Cards, Second Green Revolution etc. will remain only paper schemes.
- Subsidy of more than Rs. 30,000 crores is outstanding to manufacturers some of which dates back to 2008.
Posted on | The Hindu