From long time this is
a matter of discussion that if government keeps urea production and import
below the demand then farmers will use urea under a limit. But why no one can
understand the complication that keeping less stock is not solution to use of
urea by farmers. Because those farmers who have money will certainly buy the urea
as much as he requires. Keeping low stocks as per requirement will leads to
BLACK marketing. Till 2014 there were huge urea crises prevailed in market, and
it was always sold above M.R.P. as black marketing.
To curb the excess use of urea by farmers government can
withdraw the Urea subsidy. If this happens then prices of urea will shoot up. Then
this can do some role. Increase in prices
of a commodity or a product may only limit its use.
But here one think is
important to note that farmers are not using urea as more as government
predicts. The farmers are cautious enough to see the impact of high urea doses.
Almost all the farmers are aware not to apply urea in excess quantity. But in case of urea, governments were keeps on
focusing to make lower the stocks of urea in country. but this situation was
generated complication in farmers community as trading and selling happened
urea and also other fertilizers as Black marketing.
The previous
governments were also keeps cap on the urea production for urea manufacturers
plants. This shows that how governments
were not interested in solution of a problem. Unfortunately they keep on
maintaining the situation as it is.
So till 2014 the urea crisis was prevalent through the
country. In Modi government, the manufacturers gets rights to produce urea as
much as they can.
Before 2014 only 30 %
of urea was allowed for neem coating. This was also a case that governments
were deliberately creating the problems. But in the current government they directed
companies to make 100% neem coating of all urea.
Before 100% neem
coating the urea was used in the different factories for non agriculture
purpose. Urea has different grade for the industrial and agricultural purpose. The
urea for the industrial purpose is not subsidized so its cost is more than
double than urea for the agriculture purpose. So misuse of the subsidy was also
a part and agriculture grade urea was used in considerable amount by other
industries such as ply wood manufactures and many more. Urea without neem
coating was also used by the synthetic milk traders, or we can say it was used for
adulteration. By neem coating the urea
for the agriculture could not be used in industries and also not by milk mans.
Till date urea is being imported along with domestic
production with some restrictions. Now in the country several urea plants are
getting revived as in Gorakhpur, Uttar Pradesh. Government has decided not to import
urea from other countries within five years. Government wants to produce
sufficient urea from domestic manufacturers for all its domestic demand. But here
government has to give assurance to the manufactures not to delay subsidies
because due to subsidy issue private players are not interested to invest in
urea manufacturing. Due to subsidies and low profits Tata Chemical Ltd has sold
out its plant. To establish a new urea plant it takes minimum three year to become
operational. So if government wants to achieve sufficient domestic urea
production within five years then they have to give assurance to the corporate players
for Gas and easy subsidy claims. Any delay in making these policies, the task
of becoming self sufficient in urea production within five years is very
difficult.
