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.

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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 provide more resources for rural infrastructure? If so, how?

Postby raj_lakshmi@yahoo.com » Thu Jun 23, 2011 11:00 am

I too think that subsidy on food and fertilizer are 2 different topics. While one cannot think of reducing subsidy on food given the poverty in India, one surely should discuss if the subsidy on fertilizers is to be continued.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby toamogh@yahoo.co.in » Sun Jun 26, 2011 5:18 am

I feel that the subsidy on Fertilizers must be reduced and farmers must be encouraged to use organic farming methods. Fertilizers cause damage to the soil and ecology and hence there use must be controlled by reducing the subsidy.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby Krishna.vadakkepat@gmail.com » Thu Jul 07, 2011 1:49 pm

No but should try and explore direct cash transfers to the beneficiary instead of paying the fertilizer companies. This may reduce the subsidy requirement and also provide options to the farmer. Smilarly for food subsidy as well we could reduce admin costs by resorting to direct cash transfers
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby info@fairweld.com » Wed Jul 27, 2011 9:23 am

Food subsidy or subsidized food should be restricted to the families, which are below poverty line only.

Fertilizer subsidy should be restricted to the farmers, who has less than 5 acres of land.

We should also restrict subsidized kerosene and gas to the families below poverty line.

UID should be used to achieve this goal.

Tax exemptions given to agriculture equipments are to be removed.

All the money so saved can be deployed to improve the rural infrastructure.

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

Postby santhosh_gvd@plan.com » Sat Aug 06, 2011 9:56 am

no.bcz .food and fertilizer was very important for a human being/for poor people.they may die for not available food
in the case it may reduce its harmpfulll for economic groth.
so that we are maintain the infrastruture devolopment for shake of the nation with the food.
in the india 75% of the people are living in the rural area they occupation is agriculture so its important the supply of fertilaizers.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby santhosh_gvd@plan.com » Sat Aug 06, 2011 10:39 am

india is poor nation here so many poor peoples are there .for there survaival provaide of food is important.
otherwise the power of man can decreeses by there death .due to the angree

fertilaizer -is also imp bcz india is a agreecultural country 75% of people are get the job in agreeculture
70% of nation product coming by feild of agreeculture so imp to provaide its nessasory,meatirial like Fertilaizer.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby nupur.srivastava@gmail.com » Thu Aug 11, 2011 10:41 am

1) Do not reduce food subsidy + keep subsidy for organic fertilizers + remove subsidy for other fertilizers.

2) Link MGNREGA with PMGDY + agriculture.

3) Collect data from each village about the labour market , skills, infrastructure requirments, agriculture labour needed(season wise).

4) Map a career path for these un-organized labour force which works for MGREGA. Ask them where they want to work (infrastructure or agriculture).

5) Ask them to register for the chosen field + create UID + link with bank accounts.

6) Create a MIS where both rural employers and employees can submit their requirements(like naukri.com in urban areas). Labour can be shared with central govt+state govt+employee. IT WOULD REDUCE INFLATION. All type of contracts and govt transactions should be done through this MIS. It should be part of Mission Mode programme.

7) After the 100 days of labour are over. The now organized labour, based on job performance can choose from either following the new requirements if exist or can choose to go to any SKILL BUILDING. It will KEEP THE MOTIVATION HIGH.

8) Make IT-education compulsory for all the MGNREGA workers in between the working period batch-wise.Enhance there knowledge +skills in both agriculture and other skills.

9) In India we have lot of money but the utilization of it is not systematic. While planning we also need to understand the physchology of the society.

10)Through this we can have agricultural lands fertile, lush green, giving enough food for all. We will have infrastructure ready + LOW INFLATION. Increase in the number of MGNREGA days + better livelihoods for the rural Indians.

11) After the infrastructure dev is on the verge of finishing, settle these labourers into some economic activity(crafts, regular employee, agro-industry workers).

12) Basically we need to plan a self sustaining village which is connected to other villages and cities. These villages should provide agro products + craft items to the Urban counterparts. Thereby making India a golden bird!!!!.

We have to work on all this together with ETHICS and TRANSPARENCY + ENVIRONMENTAL CONCERNS.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby iasmaneesh@india.com » Mon Aug 22, 2011 4:36 pm

If we reduce the food and fertilizer subsidy this may lead to a higher push to draconian impact of inflation. This in turn can decrease the demand in both rural adn urban areas and may lead to stagflation. At the same time pumping and diversifying the Rs . saved to the Rural Infrastructure would create additional labour demands and which would inturn create the employment and overcome the anticipated stagflation, but would widen the inflationary impact for some time till the forces of market stablize it.

This would further lead to a shift from agricultural growth to more of capital intensive growth.

So go for a more balanced growth... and enhance MGNREGA before giving a set back to workforce engaged in agriculture..
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby mvg1111@rediffmail.com » Tue Aug 23, 2011 7:41 am

Subsidies should stay, but the usage should be calibrated. Otherwise there is over usage of cheap fertilizers. Unaware farmers use excessive fertilizers to increase the yield but it results in land becoming less & less fertile in long run.

Govt. should benchmark the use of fertilizers allowed per acre and distribute the subsidized fertilizers based on area of farm. This way we might be required to control the production of fertilizers. Some may argue that it is returning to license raj but it will prove beneficial in longer run.

Farmer education has to be one of the major exercise if we really want to strengthen rural infrastructure. Investment by govt. in this exercise will reap rich dividends for economy and society and quality of life.
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Re: Should we reduce food and fertilizer subsidies to provide more resources for rural infrastructure? If so, how?

Postby abhinav5884@yahoo.co.in » Sun Aug 28, 2011 6:44 pm

Dropping the fertilizer subsidy would aggravate farmers' cost matrix & leave him poorer incapable to reap the benefits of newly provided rural infrastructure. It is not advisable to drop either the fertilizer or the food subsidy to provide rural infra till at-least the gap between rich and the poor decreases or technological revolution lowers farmer's cost structure.

Supporting argument:
For a huge country like India where 47.5% (Tendulkar estimates) of the population is BPL and where 60% derives it's livelihood from AAA, food & fertilizer subsidy are essential.Cause of low soil productivity is over-exploitation of gross sown area to boost which fertilizer application is essential.

Secondly, in regard to food subsidy, if the poor farmer can't afford food, how is he going to utilize the new rural infrastructure.

To finance buildup of rural infra, mobilization of savings of rural households by provision of banking facilities should be considered.
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