Budget 2012: Farmer bodies oppose subsidy cut in P&K fertilisers

NEW DELHI: Farmer organisations opposed the government's move to cut subsidy of phosphatic and potassic (P&K) fertilisers saying it would lead to rise in retail prices of the crop nutrients.

The All India Kisan Sabha (AIKS), Paschim Odisha Krishak Sanghatan Samanvay Samiti, Karnataka Rajya Raitu Sangh and Kisan Adhikar Abhiyan (Wardha, Maharashtra) have said that government's reason of fall in global prices of fertilisers behind the subsidy cut will not benefit the farmers.


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Indian Farmers Fertiliser Cooperative Ltd (IFFCO) had today said that it will not raise the retail prices of (P&K) fertilisers till this kharif season (July-September).

Industry body Fertiliser Association of India (FAI) had on Thursday said that reduction in subsidy will not lead to any increase in the retail prices of P&K fertilisers.

AIKS condemned the Cabinet's approval for reducing the total subsidy outgo for P&K fertilisers, claiming that the move will be used as a pretext by the fertiliser companies to jack up prices of these crop nutrients.

Kisan Adhikar Abhiyan and Paschim Odisha Krishak Sanghatan Samanvay Samiti besides criticising the cut in subsidy of P&K fertilisers have also urged the government to create a separate budgetary allocation for ecological fertilisation in the upcoming budget.

Aiming to save around Rs 10,000 crore without hurting the farmer, government had on Thursday cut subsidy on decontrolled fertilisers like DAP and MoP for 2012-13 fiscal.

The decision was taken by the Union Cabinet in the backdrop of about 20 per cent decline in the global prices of these nutrients, which are mostly imported.