Question

what is canalization of fertilizers import.
What are the effects of fertilizer subsidy
in India​

Answer 1

Answer:

FERTILIZER SUBSIDY POLICY OF GOVERNMENT  

 

Policy framework on Fertilizer subsidy  

Timely availability of fertilizers as input to the farmer at affordable prices, is vital for  

growth of agriculture sector in the country.  Subsidy or concession schemes have been an  

integral part of Government policy to sustain agricultural productivity which in turn plays  

critical role in ensuring the food security in promoting rural livelihood and employment.  

 

2.2 The Government of India established the “Central Fertilizer Pool” in 1944 to ensure equitable distribution of all fertilizers at fair prices all over the country.   No subsidy seems  

to have been paid on fertilizer before 1977 except subsidy on Phosphate due to its high  

prices in the international market during 1977.     Based on the recommendations of the  

Fertilizer Prices Committee (Maratha Committee), set up under the Chairmanship of Shri  

S.S. Marathe, the then Chairman of the erstwhile Bureau of Industrial Costs and Prices  

(BICP), the Government introduced a unit-wise Retention Price Scheme (RPS) from  

01.11.1977 for indigenous nitrogenous fertilizer units.  Subsequently, this was extended to  

phosphatic and other complex fertilizers from February 1979 and to Single Super  

Phosphate from May 1982, which continued up to 1991.   Later on, subsidy was also extended to imported phosphatic and potassic fertilizers.  Till 30th September, 2000,  

fertilizers subsidy was being administered by the Department of Agriculture and  

Cooperation (DAC) and thereafter it was continued by the Department of Fertilizers with  

changed parameters from time to time.    

 

2.3 As per the provision of the Fertilizer Control Order (FCO), the fertilizers which meet  

the standard of quality laid down in the Order, should only be sold to the farmer.   The State  

Governments are supposed to check the quality of the fertilizers by the manufacturers  /  

importers of fertilizers as prescribed under the FCO and are fully empowered to take action  

under EC Act 1955, if the fertilizers are found to be non/sub-standard.   The penal provision  

under the EC Act, 1955 for violation of quality standards includes prosecution of offenders  

and sentence if convicted up to seven years imprisonment besides cancellation of  

authorization certificate and other administrative action.  The Department of Fertilizers does  

not pay any subsidy on sale of non-substandard fertilizers and in case it has been paid, a  

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recovery along with penal interest is made. In order to ensure this, Department of Fertilizers  

obtains quality certificate of all fertilizers on which subsidy is paid.    

 

 

 

 

Explanation:

Answer 2

Explanation:

the subsidy is paid on fertilizers sold direct agriculture uses ....(•)release of subsidy under DBT in respect of indigenous P&K ,DAP and SSP. under DBT system , 100 percentage subsidy on various fertilizer grades are released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries.

CANALIZATION OF FERTIZERS IMPORT:

canalization means the establishment of trade monopoly in foreign trade .

(•) 'canalization ' of import or export means import or export only through the agencies designated by the central government.

HOPE IT HELPS ......