Strategic Sourcing for Fertilizer Security
Rashtriya Chemicals and Fertilizers (RCF), a leading public sector enterprise in India, is exploring opportunities to secure Rock Phosphate supplies from Mauritania. Meanwhile, other Indian fertilizer companies are finalizing agreements with suppliers in Togo. These efforts reflect India’s strategic focus on maintaining a steady supply of essential crop nutrients.
Government’s Role in Building Global Partnerships
A parliamentary committee on chemicals and fertilizers has underlined the government’s pivotal role in fostering international collaborations. The Department of Fertilizers actively promotes partnerships with Rock Phosphate resource-rich countries like Togo, Nauru, Russia, and Belarus, ensuring raw materials are available at competitive prices.
Ensuring Affordable Fertilizers for Farmers
The government’s strategic approach ensures that fertilizers reach India’s 140 million farmers on time and at affordable rates. The parliamentary committee commended these efforts, emphasizing their importance for agricultural productivity and sustainability.
Concerns About Mineral Policy Changes
The recent classification of phosphatic and potassic minerals as “Critical and Strategic Minerals” has triggered auctioning processes. This shift poses challenges for fertilizer companies by potentially increasing costs. The committee criticized this policy for prioritizing state revenue over the strategic necessity of fertilizer security.
Advocating Preferential Allotments for PSUs
Public sector undertakings (PSUs) play a crucial role in India’s fertilizer sector. The committee recommended granting PSUs preferential access to critical minerals to bolster their capacity and safeguard agricultural interests. It urged the government to balance revenue generation with national priorities.
Transitioning to Direct Cash Transfers
Since 2018, the government has used a direct benefit transfer (DBT) system for fertilizer subsidies. However, the committee has proposed shifting to direct cash transfers to enhance transparency and subsidy distribution efficiency.
Conclusion
India’s strategic initiatives, including global partnerships and refined policy frameworks, are vital to ensuring uninterrupted fertilizer supplies and affordability for farmers. Addressing mineral policy concerns and supporting PSUs will be key to achieving long-term fertilizer security and agricultural sustainability.
