Urea pricing: a hot potato no
one wants to touch
Despite loud
thinking and numerous expert reports over the years, the UPA Government
is yet to muster courage to decontrol urea. It has also dragged its feet
over clearing the much-discussed 10 per cent hike in retail prices of
urea.
by Naresh Minocha
‘Urea is the one fertiliser the pricing of which affects all sections of farmers, including marginal and small farmers’
– Joint Committee on Fertiliser Pricing in August 1992 seeking a 10 per cent cut in urea prices.
Urea has
remained a hot political potato ever since the Government accepted the
recommendations of the country’s first-ever Joint Parliamentary
Committee (JPC) on pricing of any product. Today, the political class
ensures that its statutory price remains one of the lowest in the world.
It thus retails at a price, which is not even half the price of branded
table salt. Urea’s overuse and its diversion to chemical producers and
smuggling to neighbouring countries is thus subsidy-driven...Read More
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