Center For Workers Education

for building a democratic labour movement in India

Major attack on farmers: Prices of Urea is to be decided by the corporate

Urea is the most Agricultural input and consumed in the highest amount as fertilizer. Subsidies on fertilizers were already slashed but the prices were still controlled and regulated by the government. Now, the government has decided to deregulate and free the prices of urea. This will certainly be devastating for small and marginal farmers who are already finding it difficult to cultivate their field due to drastically rising input costs.

An empowered group of ministers (EGoM) under Finance Minister Pranab Mukherjee has cleared the proposal to free the prices of urea and bring it under the Nutrient Based Subsidy (NBS) policy. The government has decided to raise urea prices by 10 per cent in the first year of the policy, after which the industry would be free to determine the prices.

At present, the price of urea is Rs 5,310 a tonne, which was increased from Rs 4,830 a tonne in 2010. Imports of urea have risen sharply to six million tonnes in 2010-2011 from 0.64 million tonnes in 2004-05. Last year, the total consumption was 28 million tonnes, of which 22 million tonnes was met through domestic production, according to official estimates.

Proposal to free urea prices gets GoM nod, http://www.business-standard.com/india/storypage.php?autono=445032

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This entry was posted on August 7, 2011 by in Worker Organising and Solidarity.

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