PM overrules allies on urea

NEW DELHI: In the midst of a growing feeling that the government had neither the stamina nor the stomach for bold decisions, the Cabinet decided to free the pricing of fertilisers, overriding objections of the nodal ministry. Prime Minister Manmohan Singh has been maintaining that there was a need to rationalise the subsidy bill, which had become unsustainable.

Despite his opposition, fertiliser minister M K Azhagiri was unable to block the decision. At the meeting, Mr Azhagiri opposed the hike and giving the industry a free hand to fix prices of fertilisers. His position was supported by senior Cabinet members.
However, according to I&B minister Ambika Soni, the final decision was unanimous. Mrs Soni said the industry had assured the government that fertiliser prices would not be raised for the coming kharif season and would be maintained at the current level.

The decision is significant as it comes close on the heels of the government’s inability to push through the plans to free the pricing of fuel. The government was unable to go ahead with a hike in fuel prices largely on account of strident opposition by railway minister Mamata Banerjee.

This is the first bold decision of the UPA-II. The government has been hamstrung by coalition politics, particularly with the Trinamool Congress and DMK resisting such moves. This willingness to take a tough call could be a sign of things to come.