Monday, February 16, 2015

India Russia Bilateral Trade,Influenza A virus subtype H5N1,Fertilizer use Statistics in India

1. India Russia bilateral trade currently stands at $ 6 billion which is less than 1/15th of the bilateral trade between China and Russia and this amount of $6 billion is less than 1 percent of India’s total international trade.

In 1960s Russia supported India in face of hostile China, Pakistan and America now when Russia is in doldrums due to Crimea crisis India should make sure that Russia feels its support though not directly.

2. Highly Pathogenic  Avian Influenza A(H5N1) outbreak in ducks in Kerala has been controlled by culling 2,80,000 birds. This virus kills chicken bird but they can survive in ducks without killing them. By being in ducks they can transfer this disease to humans.

3. Fertilizer use stats in India – In the budget of 2014-15, the fertilizer subsidy is estimated to be around Rs. 72, 970 crore. Around Rs. 30000 to 35000 crore of pending fertilizer subsidy bills are there that need to be cleared. So the overall expenditure comes out to be over Rs. 1,00,000 crores which is in excess of 1/10th of Centre’s tax revenue.

In India due to NBS (Nutrient Based Scheme) the price of Muriate of Potash (MoP) and DAP (Di ammonium phosphate) has increased tremendously and their current price is 4 times the price of urea. The present price of Urea in India is around Rs. 5360 per metric ton or $86 per metric ton. This is the subsidized rate of Urea. The market price globally of Urea is around $300 per Metric ton and it varies from country to country according to their subsidy regime as Urea is a major fertilizer product all over the World. As a result of highly subsidized Urea in India its use is diverted for non agricultural uses and it is said there are reports that Urea is smuggled out of India to neighbouring countries as their prices of Urea are comparatively high for eg. Pakistan-$362 per MT, China-$265 per MT, Bangladesh-$207 per MT, Indonesia-$148 per MT, Philippines-$462 per MT.

Some problems faced by Indian fertilizer sector –

(a) Appropriate investments in sector not present.
(b) Rising import bill and subsidy bill.
(c) Diversion of Urea for non agricultural uses.
(d) Smuggling of Urea as discussed earlier.
(e) Imbalance in proportional use of Nitrogen, Phosphorous and Potassium which should ideally be (4:2:1)

What needs to be done –

(a) Unlike China and Pakistan, India provides Urea at subsidized rate because the MSP of staple crops in India is way below Pakistan and China and India cannot increase this Minimum Support Price beyond a level because in National Food Security Act of 2013, there is provision of wheat and rice to be sold as low as Rs. 2 to 3 per kg to Below Poverty line populations so that is why MSP increase is not an easy task.

(b) Subsidy should be provided keeping in mind local cropping conditions and requirements. The bias against DAP, MoP should be removed in accordance with their requirement which may vary from region to region. 

(c) Fertilizer subsidy can be provided to farmers through Jan Dhan Bank Accounts linked to Aadhaar and UID. This step will lead to saving of Rs. 10000 crore as the smuggling and non agricultural uses of urea will stop.

Saurashtra cotton weavers are demanding increase in the MSP Minimum Support Price of cotton from Rs. 810 per 20 kg to Rs. 1000 – Rs. 1100 per 20 kg. They have said that the input cost of seeds, power, fertilizers and wages paid to be the labourers are rising whereas the price at which cotton is sold are falling. So it is becoming unviable for them to practise cotton weaving in prevailing circumstances.

No comments:

Post a comment

Add a Comment or Query