The Government’s failure to bring a comprehensive set of reforms for the fertiliser sector is a missed opportunity. Glaring anomalies need to be fixed to harness long-term potential. Having returned to power for a second term with a thumping majority, it was expected of the Modi Government to kick off immediate reforms for the fertiliser sector. Being just the beginning of the five-year term, now is the golden opportunity for it to opt for big bang reforms as any adverse fall-out in the short-run (inevitable when harsh measures are implemented) won’t pose any threat to the Government. Alas, it missed the opportunity. Finance Minister Nirmala Sitharaman’s Budget, too, had no mention whatsoever of substantive issues pertaining to the fertiliser policy even as...
More No comments
News & Media
Growth a priority, finally
The RBI has lived up to people’s expectations by cutting the repo rate. It should avoid being glued to inflation. Instead, the interest rate policy should propel growth In its bi-monthly monetary policy report, announced on June 6, the Reserve Bank of India (RBI) reduced the repo rate/the policy rate (rate at which the RBI lends money to commercial banks) from the subsisting 6.0 per cent to 5.75 per cent. Together with a reduction of 0.25 per cent, each notified in the previous two reviews (February and April ), it has cut the rate by 0.75 per cent in less than six months. In another significant move, the RBI has changed its policy stance from hitherto being “neutral” to “accommodative.” Whereas a...
More No comments
A subsidy policy hamstrung by a desire to contain it
The government has approved transportation of fertilisers through coastal shipping and inland waterways. This is a welcome move as it offers the possibility of significant reduction in freight cost, besides lesser time in reaching the material to consumption points and being environment friendly as well. It has also approved freight subsidy to manufacturers on the cost incurred on movement of fertilisers via this mode. In case of single mode or multi-modal transportation, which includes coastal shipping, ‘the freight subsidy will be restricted to railway charges or the actual freight incurred, whichever is less’. Further, ‘only movement of subsidised indigenous fertilisers, viz., urea and phosphate and potash fertilisers – through coastal shipping/inland waterways will be eligible for payment of freight subsidy...
More No comments
Some merit in ‘one poll’ idea
Both the Centre and States should focus on governance for a full five years without any distraction and implement structural reforms for sustainable development besides saving tens of thousands of crores in election expenses. Let’s at least debate the idea The Prime Minister’s idea of “one nation, one election” is being staunchly opposed by many political parties, mainly on the grounds of it being undemocratic and an assault on the federal polity and, hence, unconstitutional. Opposition parties have argued that in the case of simultaneous poll to both Parliament and State Assemblies, national issues will dominate over State-specific subjects. This may yield fortuitous benefit to the dominant national party as the voter won’t be able to clearly articulate his/her choice...
More No comments
Draw the line on tax evasion
While there can be no two opinions on the overarching need to increase funding for start-ups, the Government must not do anything which compromises its fight against black money. The DCF valuation method is not sustainable and must be challenged In a major ruling that will have a profound impact on the way companies are taxed, the Income Tax Appellate Tribunal (ITAT) has upheld the validity of the Discounted Cash Flow (DCF) method for arriving at the fair market value of a company’s share. The order says “the DCF method is recognised; though it is not an exact science and can never be done with arithmetic precision.” The order needs to be viewed in the backdrop of tax demands raised...
More No comments
Join WTO e-com talks, have a say in global rules
As many as 76 members of the World Trade Organisation (WTO) — nearly half the WTO’s membership — have begun a process of framing rules governing cross-border e-commerce. The initiative is being spearheaded by the United States, China, the European Union and Japan — the four largest trading nations in the world economy — and has the tacit support of leading multinational companies (MNCs) in the e-commerce space such as Amazon, Walmart/Flipkart and Alibaba. India has strongly objected to the move. The objection stems primarily from an apprehension that in the event of India being a part of the negotiations, it will have to commit itself to harmonised WTO rules on e-commerce which will take away the ‘policy space’ currently...
More No comments
Imperatives for a new India
Now that the BJP Government has received mandate for another term, will it will play hard ball and bring the much-needed reforms in crucial sectors? During his first term (2014-19), Prime Minister Modi focussed on governance reforms, cutting bureaucratic red tape, simplifying procedures, expediting approvals and ease of doing business. The Government also spent its energy on effective implementation of welfare schemes, thus ensuring that assistance reaches the beneficiaries in full vide the Direct Benefit transfer (DBT). Now that the public has given him a resounding mandate to rule for another term, he should crack the whip on long-pending reforms. The key sectors crying for immediate attention include food and fertilisers, oil, gas, power, irrigation, credit to name a few. At present,...
More No comments
Bridge the gap on patent rights
It’s unfortunate that the USTR, the US trade body, has put India on a ‘priority watch list’ for intellectual property rights violations. For now, the rift appears too wide and requires adjustments by both sides. Protection of IP rights isn’t always inimical to public interest The US Trade Representative (USTR) has placed India on its Priority Watch List (PWL), alleging lack of “sufficient measurable improvements” to its Intellectual Property (IP) framework on long-standing and new challenges that have negatively affected American right holders. It has warned of enforcement actions under Section 301 of the Trade Act or pursuant to the World Trade Organisation (WTO) or other trade agreement dispute settlement procedures, necessary to combat unfair trade practices. The long-standing IP challenges facing...
More No comments
With WTO in view, take up restructuring subsidy regime
There is trouble brewing for India at World Trade Organisation (WTO) – the multilateral body which binds member countries to a common set of rules with regard to trade in goods and services with ‘fairness’ and ‘non-discrimination’ as its underlying principles. To get a sense of where it is heading, let us put things in perspective. In May, 2018, in a hard hitting submission made to WTO Committee on Agriculture (CoA), the United States had lambasted India for indulging in substantial under-reporting of its market price support (MPS) programme for wheat and paddy farmers alleging that the sops given by government far exceed the permissible limit. This was a counter to the latter’s notification to WTO in March, 2018. Under...
More No comments
Direct action needed for direct benefits
In its present form, the fertiliser DBT scheme has many loopholes. In the interest of the farmers, the policy needs an overhaul so that they can put subsidy to best use and enhance fertiliser-use efficiency. Will the new Government have the will to do so? The Ministry of Finance and NITI Aayog are working towards preparing a roadmap to directly transfer fertiliser subsidy to the farmers. The data being used to give Rs 6,000 per year to 120 million small and marginal farmers under the Pradhan Mantri Kisan Samman Nidhi will be used for this purpose. The subsidies on fertilisers along with PM Kisan deposits will serve to give a quasi-universal basic income transfer to the farmers. The proposal will be put...
More No comments