Press Note Eng Dt: 27/09/2011 on Urea Fertilizer

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Press Note                                                                             Dt. 27.09.2011

• Centre is providing Gujarat more than its requirement, but BJP leaders are not allowing fertilizer the reach farmers.
• During BJP led rule in the centre Gujarat used to get only 16 lakh tons of fertilizer.
• In Congress rule Gujarat gets 38 lakh MT fertilizers.
• In reply to a question, Gujarat government itself has admitted that Centre gave Gujarat fertilizer more than the state’s demand.
• Besides four percent of VAT there is additional surcharge of one percent in Gujarat on fertilizer.
• The centre has given subsidy of Rs 15,000 crore in the last three years.
• UPA government gives on each bag subsidy of Rs 500 on Urea, Rs 988 on DAP and Rs 803 on Potash.

The greatest injustice to farmers of Gujarat about fertilizer was done during the NDA rule. UPA government was providing maximum fertilizer to Gujarat farmers. However, it is sold in blackmarket to other industries. This was stated by Shaktisinh Gohil, Leader of Opposition while speaking on the last day resolution in the Assembly. Gohil said that it was ironic that Gujarat was the only state in the country where VAT was levied on fertilizer. He pointed out that besides four percent of VAT there is additional surcharge of one percent.

Giving figures of fertilizer during NDA and UPA rule, Gohil said that it was evident that UPA was giving more fertilizer. He said that in 2001-02 Gujarat got 1688346 MTonnes and in 2002-02 it got 1441340 MT. Against this in 2008-09, it was 3345263 MT, in 2009-10, it was 3336527 and in 2010-11 it was 3879233 MT. Gohil further pointed out that government in its reply to a question on February 28 had admitted that against the demand of 1720,000 MT the central government had provided more-188477 MTonnes.

But the fertilizer was diverted into black-market. In addition to this the centre has given subsidy of Rs 15,000 crore.

Availability of Chemical & Fertilizer in Gujarat

 

Year	( Lakh Tonne)
	Urea		DAP		MOP		Mixed
	Requirement	Availability	Requirement	Availability	Requirement	Availability	Requirement	Availability
2009 – 10	18.75	18.21	8.00	7.64	2.30	2.86	4.72	4.20
2010 – 11	19.50	21.96	8.40	8.11	2.30	2.02	4.83	6.62
2011 – 12 (As per on 26.9.2011)	11.00	10.32	4.80	3.65	1.10	0.73	2.60	3.24

  This shows that on average Gujarat has got as per its basic requirement. Against the requirement of 18.75 lakh ton Gujarat has got 18.21 lakh ton urea. Against 8 lakh tone of DAP, Gujarat got 7.64 lakh tons. Despite this fertilizer did not reach farmers because of delay in transportation.

• At present UPA government gives subsidy of Rs 500 on Urea, Rs 988 on DAP and Rs 803 on Potash. This is per bag. In one year farmers have got subsidy of 95,000 crore. During NDA rule it was just Rs 8,000 to Rs 10,000 crore. Farmers of Gujarat have got subsidy of Rs 7290 crore in 2008-09, Rs 3019 crore in 2009-10 and Rs 4864 crore in 2010-11.
• Government of India has undertaken modernization of four fertilizer plants at the cost of Rs 1200 crore. Of these two plants are in Punjab, one in Haryana and one in Gujarat- Narmada Valley Fertilizer Corporation. Though Chief Minister inaugurated the plant, but instead of expressing thanks to the central government, he criticized.
• Himachal Pradesh offers additional subsidy on central government subsidy. Here in Gujarat government on the contrary collects five per cent VAT on fertilizer.
• Gujarat government allows sale of fertilizer of its two plants outside the state just for the greed of subsidy. It should sell entire production of these two units to Gujarat farmers so that there is no crisis at all.

Gohil quoted from the letter of Director of Agriculture of this year in which Gujarat government had expressed thanks for supply of more fertilizer than the demand of Gujarat.

He said that there was a nexus of BJP men indulging in the black marketing of fertilizer. He gave a recent example of seizure of Urea worth Rs 8 lakh. It was subsidized Urea.  Similarly, 2858 bags of Urea were also sized from Vap[I area, he said.

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