To what extent New Urea Policy 2015 is able to address the skewed use of fertilizers in the country. Discuss citing key features of this policy.
Published: October 28, 2015
Hint: The new Urea Policy is mostly about making energy efficiency norms tighter for fertilizer units. What the government has done is to link their incentives with the annual energy consumption and prompted them go for most energy-efficient technologies to raise actual production. The new Urea Policy does not seek to trim Urea subsidy substantially. It keeps the Urea prices same as before, otherwise that move could be tagged as anti-farmer. This raises doubt if this policy would effectively address the distortion.
Model Questions Category: 068 - Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices