Tamil Nadu Farmers Blame Centre for Shortage, High Prices of Fertilisers

Farmers in Tamil Nadu are protesting the shortage and increase in prices of fertilisers, including urea, diammonium phosphate (DAP) and potash at the onset of the sowing season. Farmer associations have alleged that out of the allocated 1,43,500 metric tonnes (MT) of fertilisers, the manufacturing companies have supplied only 77,862 MT, leading to a shortage in many districts.

The dependence on the import of raw materials required for fertilisers, the latter’s inclusion in the Goods and Services Tax—leading to the increase in prices—and the reduction in the subsidies for fertilisers by the Centre have severely impacted the farmers.

The Tamil Nadu Vivasayigal Sangam, the state unit of the All India Kisan Sabha (AIKS), has accused the Bharatiya Janata Party (BJP) government of misleading the farmers on the allocation of subsidies and reducing the prices.

PRICE RISE AFFECTING FARMERS

Tamil Nadu farmers cultivate crops in around 55 lakh hectares (ha) with paddy sown is 20.6 lakh ha, cereals 25.42 lakh ha, corn 3.17 lakh ha, groundnut 3.86 lakh ha and sunflower 50,000 ha. All the crops, primarily paddy, require fertilisers and pesticides to guard against insects and for better yield.

Condemning the Centre’s “inaction” in ensuring the availability and keeping in check the prices of fertilisers, the AIKS held protests on December 28. “The primary necessity of the farmers is the availability of fertilisers at affordable prices. The cost of Complex SPIC, complex coromandel, potash and superphosphate have increased by, at least, Rs 200 to Rs 300. But the BJP government continues to claim to be friends of the farmers,” R Ravi, the Kanyakumari district secretary of the AIKS, told farmers in Nagercoil.

The increase in the subsidy for DAP from Rs 500 to Rs 1,200 in May 2021 has not ensured the arrest in price rise. According to KP Perumal, the state office bearer of the AIKS, the price of DAP has increased to Rs 2,400 per bag. “The subsidy for fertilisers has been reduced by the BJP government from Rs 1,33,947 crore in the previous Budget to Rs 79,530 crore. The Indian Farmers Fertilisers Cooperative has informed that the increase in the raw material cost in the international market is another reason for the price rise,” he said.

The AIKS state unit has demanded the introduction of nutrient-based subsidies and import of fertilisers by public sector companies to check the prices.

REDUCED STOCKS AND GOVERNMENT INACTION

“We have seen reports of farmers waiting in long queues to get DAP and other fertilisers in the northern parts of the country. There have been reports of hoarding of fertilisers as well. This may happen in Tamil Nadu as well if the shortage is not compensated,” Ravi said.

The AIKS alleged that the shortage has been caused by the Centre not importing sufficient fertilisers. “In 2020, 25% of urea, 68% of DAP and 100% of potash were imported. In March-September 2021, urea import and manufacturing were down by 31%. In the same period, potash distribution was down by 68%,” Perumal said.

The stocks of DAP and potash were also down by a huge margin till October 31, 2021, compared to the stock during the same period in 2020. “We had a DAP stock of 44.95 lakh tonnes in 2020 but it was only 14.63 lakh tonnes in 2021. As compared to 21.7 lakh tonnes of potash in 2020, we had only 7.8 lakh tonnes,” Perumal added.