Instead of pumping more subsidies the Government should push for nano fertilisers which are efficient and cost-effective The Union Minister of Health and Family Welfare and Chemicals and Fertilizers Mansukh Mandaviya has stated that during 2023-24, around Rs 46,000 crore would be needed for fertilizer subsidy payments over and above Rs 175,000 crore being the budget estimate (BE) given by the Finance Minister Nirmala Sitharaman in the budget presented on February 1, 2023. On the other hand, the Ministry of Finance (MoF) feels, payments could be even less than BE. Fertilizer subsidy is payments made to manufacturers or importers to cover the excess of the cost of production/import and distribution (or cost of supply) over a low maximum retail price...
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Category: Pioneer
MSP guarantee will spell disaster for farmers
The hapless farmers must be liberated from the stranglehold of cartel licenced traders by giving them options to sell their produce wherever they want Union leaders may have called off farmers’ agitation in Haryana over Minimum Support Price (MSP) for sunflower seeds following the State government’s decision to agree to their demand. However, they maintain that their protest for securing legal guarantees for MSP across the country will continue. A legal guarantee for MSP was a major demand of the farmers mainly from Punjab, Haryana and western Uttar Pradesh during the year-long protest in 2020/2021 over the three Central farm laws. That protest ended when Prime Minister Narendra Modi announced on November 19, 2021, the repeal of those laws. Do...
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Tax reforms are yielding good results
The Income Tax Department has successfully used technology to reach out to the assesses in non-intrusive ways A major factor that has helped the Modi – government keep up the tempo of investment in building infrastructure and other development activities and continues with welfare schemes in desired measure without causing any slippage in fiscal deficit target has to do with a steep rise in tax collection. The gross tax revenue (GTR) – including total direct tax collection, proceeds from Goods and Services Tax or GST, customs and excise duty – net of refunds – surged from around Rs 21,11,000 crore during the financial year (FY) 2019-20 to Rs 30,50,000 crore during 2022-23 – an increase of about 50 per cent....
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E-commerce policy conundrum
The government must provide a level playing field to all. It should legitimize 100 per cent FDI in retail, online and offline, big and small Referring to the national e-commerce policy, the Secretary Department for the Promotion of Industry and internal trade (DPIIT) in the Ministry of Commerce Rajesh Kumar Singh has said it will “put in place a streamlined regulatory framework for the ease of doing business, adoption of modern technologies and the integration of supply chains”. It will seek to create “a conducive environment for the overall development of the sector and boost exports”. According to the foreign trade policy, the Union government is aiming at an e-commerce export potential of $200 billion to $300 billion annually by...
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The war against NPAs isn’t over yet
The government should strengthen mechanisms to give a fair deal to MSMEs According to a joint report by ASSOCHAM and Crisil Ratings, gross non-performing assets (NPAs) – an acronym for loans that have gone bad – of banks have declined by 0.9 to less than 5 per cent during the financial year ending March 31, 2023, and are expected to decline by another 1 per cent to a decadal low of less than 4 per cent by March 31, 2024. In respect of loans given to the corporate sector, gross NPAs are expected to be less than 2 per cent by March 31, 2024, down from a peak of 16 per cent as on March 31, 2018. The public sector...
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Rs 2k note exchange: Demonetisation 2.0
Rs 2000 note exchange will not have any impact on black money. It will only help hoarders by exchanging Rs 2000 notes without disclosing their identity In its decision to withdraw Rs 2000 currency notes from circulation announced on May 19, 2023, the Reserve Bank of India (RBI) has stated that they will continue to be legal tender. The notification issued in this regard states:- “…in pursuance of the “Clean Note Policy” of the RBI it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender.” From the above, prima facie one gets a sense that it is not a demonetization exercise as it happened over...
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Who will end the free-run of freebies?
Political parties don’t want freebies to go. It is their much-cherished tool to harness votes. And they know it works like a charm In the just concluded assembly elections in Karnataka, the grand old party (GOP) Congress had promised five guarantees viz. Gruha Jyoti, Gruha Lakshmi, Sakhi programme, Yuva Nidhi, and Anna Bhagyain in its manifesto. Having got a decisive mandate to form the government, Congress pledged to approve all the five guarantees in the very first meeting of the Cabinet. The big question is: is it worth spending so much of taxpayers money? The guarantees are intended to be a welfare scheme. Under it, the government should ensure that (i) the assistance goes to a person who is desperately...
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Govt must push to privatise fertiliser PSUs
Despite Govt’s announcement to privatise the CPSUs, the fertilizer units remain under its control as fertiliser availability is a politically sensitive issue In the Budget for 2021-22, Finance Minister Nirmala Sitharaman had announced the government’s approach to privatisation of Central public sector undertakings (CPSUs). Privatization occurs when it sells its majority shareholding (more than 50 percent) in the CPSU and transfers control to a private entity. For this purpose, it divided CPSUs in two broad categories—i.e. strategic and non-strategic. The strategy covers four subgroups: atomic energy, space and defense; transport and telecommunications; power, petroleum, coal and other minerals; and banking, insurance and financial services. The non-strategic category includes all other sectors such as industrial and consumer goods, hotel and tourist...
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Govt flip-flop over banning pesticides
The Union Government has reversed its earlier decision on 27 pesticides, which were banned in May 2020 The manufacturing, import, sale, distribution and use of pesticides are regulated under the Insecticides Act (1968) with a view to preventing risk to human beings or animals and for matters connected therewith. The Registration Committee (RC) – set up under the Act – registers every pesticide after scrutinising the formula, verifying claims of efficacy and safety to human beings and animals and specifying the precautions against poisoning and any other functions. It is empowered to refuse registration of any pesticide if issues pertaining to safety have not been satisfactorily adhered to. From time to time, the Ministry of Agriculture and Farmers’ Welfare (MoA&FW)...
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Nano fertilisers can reduce subsidies
Nano fertilisers can yield better results but they can’t perform miracles. For a substantial reduction in subsidy, the Govt must implement agri reforms On April 26, 2023, Union Minister for Home and Cooperatives Amit Shah launched liquid nano-diammonium phosphate (nano-DAP) developed by the Nano Biotechnology Research Centre (NBRC) (Kalol) of Indian Farmers Fertiliser Cooperative (IFFCO). During the current fiscal, IFFCO plans to produce 50 million bottles (500 ml) of nano-DAP which will be scaled up to 180 million bottles by 2025-26. According to US Awasthi, Managing Director of IFFCO, by then imports of DAP might not be required; currently, India imports over 50 percent of its DAP requirement. Earlier, on October 17, 2022, Prime Minister Narendra Modi launched liquid nano...
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