Enhancing the Capacity for Growth

Today, India can sustain a GDP growth of 8 percent a year. Increasing this to 9 or 10 percent will need more mobilization of investment resources; better allocation of these resources through more efficient capital markets; higher investment in infrastructure through both public and PPP routes; and more efficient use of public resources.

read more
Sign In
Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Re: Should we reduce food and fertilizer subsidies to provid

Postby saji.albert@gmail.com » Tue Apr 05, 2011 12:37 pm

janagiramanpp@yahoo.com wrote:my idea is other way around,By allocating more resources to rural infrastructure , in long run we can reduce subsidies.


If the rural strive today only the question arise for the allocation of long term infrastructure.

Henceforth we have to continue the subsidies in the mean time we could invest for long-term infrastructure too.

While doing so we must have ensure that the amount spent by the government is reaching to the needy one.
saji.albert@gmail.com
 
Posts: 0
Joined: Tue Feb 15, 2011 8:43 am
Has Liked: 0 time
Have Like: 0 time

Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby skm53535@gmail.com » Fri Apr 15, 2011 8:59 am

Sir, basically we are agriculture base country and our majority people are farmer about fertilizer so we have to establish new plants of fertilizer (organic based/ not chemically rectified) and not to give subsidies for fertilizers either imported or from some pvt companies. We have to upgrade our country as a major manufacturer of fertilizer manufacturer by govt itself, so that can people will do the job and the cost of the fertilizer goes automatically down. PT Neharu started some fertilizer plants, but most of the plant get down due to lack of funding or bad govt policy, and now we are totally dependent upon the imported fertilizer and lots of peoples are earning from them inspite of giving any benefits to farmers.


Regards,
Shailesh Kumar Mishra
skm53535@gmail.com
9891141150[/quote]
skm53535@gmail.com
 
Posts: 0
Joined: Fri Apr 15, 2011 8:52 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby golusethi@gmail.com » Wed Apr 27, 2011 11:48 am

We should continue with Subsidy for these two sectors. However, we should take following steps

1 - Make middle man margin legal but put a top limit over it. Currently, Arthi (middleman) cannot take any commission from farmers.
2 - Remove or reduce subsidy for food products directly sold to companies e.g. Patato for chips, Tomato for Ketchups, Masala's for ready to eat food.
3 - Restrict Hoardings by middle man or Comapnies e.g. companies like Cargill and Olam buying whole mandi. There should be a limt on it.
4 - Stop Commodity trading for food items. Else, make it compulsory to take the delivery of contract.
5 - Set up government agency to manage local mandi's
6 - Create more hubs for selling and buying good directly from farmers
7 - Initiate online or over the phone ordering of food from mother dairy or similar hubs.
8- Educate farmers on the whole process.
9 - Create rural infrastructure with PPP method or use taxes collected from middleman to build teh rural

Regards,
Neeraj
golusethi@gmail.com
 
Posts: 0
Joined: Wed Apr 27, 2011 11:30 am
Has Liked: 1 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby dpkvashi@gmail.com » Tue May 03, 2011 7:35 am

Actually all these fertilizer subsidies given by govt. in the name of farmers are spurious, the huge bulk of money spent by govt goes only to the fertilizer companies and not to the farmers in reality.
These govt fertilizer companies are producing the same bag for Rs. 700-800 and selling it for 500 after recieving 200 from govt as subsidy to farmers, but there are pvt companies who can prepare and are willing to make the same bag for Rs.500.
then what is the need of this burden on govt. And why make our farmers fool.
Private sector should be given more space on pilot bases.
dpkvashi@gmail.com
 
Posts: 0
Joined: Tue May 03, 2011 7:16 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby karthik.somsekhar89@gmail.com » Tue May 03, 2011 9:11 am

I believe that a state owned and controlled entity could take up the agricultural sector by acquiring all the agricultural land and using the current agriculturists as the man power to work in the farms. It could follow the structure of corporate entities of the west indulging in agricultural field. The farmers could be ensured of regular income thus reducing suicides. It could also help in further modernizing the sector and could be used as the ground for gradual shift from primary sector to a dominant secondary or tertiary sector
karthik.somsekhar89@gmail.com
 
Posts: 0
Joined: Tue May 03, 2011 9:04 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby samara_sab@yahoo.co.in » Sun May 15, 2011 2:57 am

Food and Fertilizer subsidies are a requirement of the rural sector. Though GDP is sustained with the growth of 8 percent a year , agricultural and rural contribution to GDP is very low in comparison to other sectors. The Indian rural investment needs to adopt more sustainable approaches and realistic models of implementation. The conceptual reality of most plans are not fully materialised due to systemic and implementation gaps most of the time. Channelisiing multiple resources through PPP and development incentives of multiple sectors for rural penetration, capacity and infrastructure development needs to be encouraged and systematised. Growth needs to be coupled with diversification of resource source and system efficiency and knowledge gaps needs to be addressed to achieve this.
samara_sab@yahoo.co.in
 
Posts: 1
Joined: Sun May 15, 2011 2:44 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby samara_sab@yahoo.co.in » Sun May 15, 2011 3:08 am

I would like to reinstate the fact that fertilizers are not environment friendly and environment friendly manures needs to be subsidised and there needs to be substantial investment for research that identifies manures that is specific crop centric and that still meets the farm or crop requirements. However the rural/agrarian sector still requires subsidies since the sector is not economically viable . Resources can be still provided for rural infrastructure through public private partnerships, encouraging agrarian investments through corporate sector by investment options and development alternatives . Microfinance with low interest rates needs to be encouraged in the rural sector to support infrastructural developments where community owns their development in partnership with government, NGOs and corporates.
samara_sab@yahoo.co.in
 
Posts: 1
Joined: Sun May 15, 2011 2:44 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby sunil.muricken@gmail.com » Fri May 20, 2011 10:30 am

In my opinion even if we cut food and fertilizer subsidies it will not lead to growth in rural infrastructure. Development of rural India will not happen unless the Indian policy makers overcome their misconstrued socialistic thinking. Capital investment in rural India will not happen without providing proper incentives for entrepreneurs (this also includes farmers) interested in investing in this sector. Outdated slogans like "land to the tiller" overlooks the fact that agriculture is one of the most riskiest undertaking where the systematic and the unsystematic risk cannot be handled by weakly capitalized economic agents. Unlike the manufacturing sector, the output that one can get from farming is an unknown until the harvest is done. So is the price since most agriculture produce tend to be commodities where one is nothing but a price taker. Besides this one also has to understand that the cash flows associated with agriculture activities tend to be seasonal in nature and hence it is not something which is conducive for eking out a day-to-day living which would have been better addressed by earning wage income. The rising trend of farmers suicides (especially amongst the small and marginal farmers) in India is a pointer to the flaws in the policies which believes that tinkering with input subsidies alone are required to bring about rural prosperity. Instead, if we unshackle rural India by granting property rights, freedom to undertake whatever cultivation that the farmer desires based on his/her view on the market potential and allow companies to undertake farming, it will automatically lead to investments which can bring about growth through economies of scale and scope. For instance, isn't it strange that an Indian cannot freely cultivate and harvest sandal wood - a native tree of India which can fetch a fortune and probably spawn a 100 billion dollar industry in the form of perfumery, furniture, handicrafts etc but is encouraged to grow coffee an alien crop fetching meager earnings. We impoverish our own citizens and hope that rural infrastructures will spring out from the ground magically.

For this message the author sunil.muricken@gmail.com has received Like:
swapnilthechamp@gmail.com (Sat Oct 29, 2011 8:05 pm)
Rating: 4%
 
sunil.muricken@gmail.com
 
Posts: 2
Joined: Fri Apr 22, 2011 4:51 am
Has Liked: 0 time
Have Like: 1 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby rohitalbert5@yahoo.com » Fri Jun 10, 2011 7:09 am

yes i agree that we should reduce the subsidies that are given by government on petroleum products including fertilizers and other food articles for BPL families.The reasons are as follows
1.subsidies which are intended for specific class and cause does not benefit them.
2.Black marketing, as in the case of kerosin and adulteration with petrol has been a big issue,
3.increase in the demand for diesel cars by rich and privileged because of the subsidy offered on diesel has distorted the automobile market.and this diesel subsidy which was meant for the farmers and other small industries is not serving it's purpose.

so. it is the right time that we should move on to coupon system that has been suggested by some economists and inplemented by some of the latin american countries like brazil
rohitalbert5@yahoo.com
 
Posts: 0
Joined: Fri Jun 10, 2011 6:56 am
Has Liked: 0 time
Have Like: 0 time

Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby bimalpandia@gmail.com » Sat Jun 11, 2011 6:44 am

Subsidy on food is different from subsidy on fertiliser. Thus they should be discussed differently. Given the amount of poverty, I am strictly against any cut in food subsidy. However, that cannot be said for fertiliser subsidy. Fertiliser subsidy scheme is implemented through a set of tricky and complicated procedure where the end-user (the farmer) has no role what-so-ever. Further, fertiliser subsidy is given primarily for chemical fertiliser which is extensively import based and energy intensive. In such scenario, we must start discouraging use of chemical fertiliser and promote more and more organic locally produced fertiliser. Thus fertiliser subsidy should be geared towards organic fertiliser from chemical fertiliser and the end user must have a stake in such a subsidy mechanism. This will help in reducing the subsidy burden of the government and more importantly it will stop soil degradation and cost of cultivation to a great extent.
bimalpandia@gmail.com
 
Posts: 0
Joined: Sat Jun 11, 2011 6:35 am
Has Liked: 0 time
Have Like: 0 time

PreviousNext

cron