Fertiliser subsidy: Experts say structural reforms in the offing

These could include direct cash transfer, encouraging rational use of fertilisers

The Centre’s decision on Thursday to allocate an additional Rs 65,000 crore towards fertiliser subsidy in 2020-21 will not only help wipe off arrears accrued from unpaid bills, but could also be a precursor to deeper structural reforms in the sector.

Experts and industry representatives feel the reforms could include a gradual transition towards direct cash transfer of subsidy, instead of routing it through companies, and a shift towards more rational use of fertilisers by capping the number of bags each farmer can purchase through the point-of-sale (PoS) device each season.

However, it is uncertain how farmers will react to the direct