BUSINESS
India’s major subsidies bill balloons. And, it was set to happen
The underachievement of targets is a manifestation of an attempt by the ruling dispensation to artificially suppress the BE in order to show a better picture of the fiscal deficit
BUSINESS
More reforms are needed to attract serious investment in oil & gas
Measures taken by the government recently will remove some impediments holding back investment in exploration and production. Pricing and marketing of produce also need to be unshackled
BUSINESS
The success of PM PRANAM depends on reducing urea usage by farmers
The government has rightly emphasised the need for shifting away from chemical fertilisers, reducing imbalance in nutrient use and rejuvenating the soil. But this won’t be possible till the existing policy framework is changed
BUSINESS
Farmers and industry suffer as pesticides regulations stay lax
The government should expedite the passage of the Pesticides Management Bill to ensure incentives for producers to innovate and introduce safer products
BUSINESS
Has the government shelved reforms in gas pricing?
The revision of the gas pricing formula is in line with the recommendations of the Kirit Parikh committee but the government is silent on deregulating prices from 2027
BUSINESS
Administrative measures can’t curb misuse of fertiliser subsidies
Routing the subsidy through manufacturers and keeping the selling price of fertilisers artificially low, makes diversion of subsidised fertilisers profitable for dubious players
BUSINESS
Fertiliser Subsidy: Scrap pricing scheme and decontrol urea
Bureaucrats are micro-managing the operations of urea plants through the New Pricing Scheme. This is the surest way to scuttle any initiative to cut costs and improve efficiency
BUSINESS
Banish those thoughts of LPG subsidy ending in the near term
LPG subsidy is here to stay notwithstanding proclamations by successive governments to end it. This is because actions on the ground are driven by populism, not economics
BUSINESS
Levy 5% GST on natural gas to reduce fertiliser subsidy
Bringing natural gas under GST can end the extant differential taxation regime/varying urea cost and subsidy payments across states. It will eliminate the cascading effect of tax on tax
BUSINESS
Cap natural gas prices to control rising fertiliser subsidy
The government should continue with the extant formula for the pricing of natural gas as per November 2014 guidelines
BUSINESS
Budget 2023: Fertiliser, food subsidies can upset fiscal math
Higher cost of production due to the elevated cost of gas could increase the subsidy outgo on fertilisers during 2023-24 as would the extension of the free foodgrain scheme beyond December 2023
BUSINESS
Budget 2023 needs to play the hard ball on fertiliser subsidy
In a business-as-usual scenario, there won’t be any respite from a high fertiliser subsidy. Things could change if the Modi government plays the hard ball in Budget 2023 by going for measures such as urea decontrol and direct benefit transfer (DBT) or a significant increase in maximum retail price
BUSINESS
DBT is the way forward for balanced fertiliser use
The flawed subsidy and pricing policy followed by governments for years has led to excessive use of urea and a deterioration in soil health
