This refers to the report "No decision yet to deregulate urea prices: Ananth Kumar" (January 20). It is true that fertiliser subsidy has risen to dangerous levels. There is a lot of confusion as to who benefits from this subsidy - is it the urban consumer, the big farmers who benefit from selling to the Food Corporation of India or the domestic urea manufacturer? This confusion originates from use of the word 'subsidy', when the fact is that this subvention is necessary to bridge the gap between the dollar-denominated input costs of power, diesel and fertiliser, and the buying capacity of the consumers. The reality is that if all farm inputs are priced at their true market rates, then the price needed for crops at the farm gate will be well beyond the capacity of the urban poor to afford.
In this entire debate, the forgotten millions are the small and marginal farmers, who produce solely or mainly for their own consumption.
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In this entire debate, the forgotten millions are the small and marginal farmers, who produce solely or mainly for their own consumption.
P Datta Kolkata
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number