Consumption Of Fertilizer Essay

Rapid advancement
The production and import costs for fertilizers escalated in the early seventies due to the oil price shock. As a result, the fertilizers were becoming unaffordable for Indian farmers. With the investments going down, the expansion of production capacity also faced a setback. S.S Marathe committee in May 1977, in order to keep the farm gate prices low under the scenario of rising manufacture/import cost, recommended to implement the Retention Price Scheme (RPS). According to RPS each production unit, regardless of the age, location, technology and cost of production, will now receive a 12 per cent post tax return on net worth. A retention price for each unit was fixed based on the costs of production.
A scheme for the better

All India Consumption of fertilizers ('000 tonnes) from 1975-76 to 1984-85
Amelioration begins
Bringing down the fertilizer subsidy burden were a part of the New Economic Policy instituted in India since 1991. To meet this end, the prices of Ammonium sulphate, Calcium ammonium nitrate and Ammonium chloride were decontrolled with effect from 25th July 1991. The government also raised the fertilizer prices to 40 per cent in the same month. The Indian farmers protested and rioted to revoke this decision. In some states, the farmers went up to the level of looting the warehouses and trucks containing fertilizers and demonstrating in front of government offices.
Table 2. Retail prices (Rs/kg nutrients) of fertilizers in terms of nutrients
Year/ effective date Urea (Nitrogenous) DAP
(Phosphatic) SSP
(Phosphatic) MOP (Potassic)
11-07-1981 5.11 5.83 5.74 2.17
29-06-1983 4.67 5.46 5.31 2.00
31-01-1986 5.11 5.83 5.94 2.17
25-07-1991 7.17 8.15 8.38 3.03
14-08-1991 6.65 7.57 7.75 2.83
25-08-1992 6.00 12.43 17.5