FERTILISERS- Subsidy and Efficiency

FERTILISERS Subsidy and Efficiency (By a Special Correspondent) ON the eve of the Aid India Consortium meeting on June 16 and 17, the World Bank Vice-President, W David Hopper, made certain observations on the "structural reforms" the World Bank would expect India to pursue. Specifically, Hopper expressed concern over fertiliser subsidies in India which accounted for 1.4 per cent of the country's GNP. Apprehending that this could be because of some inefficient fertiliser units, Hopper suggested privatisation' as a possible option the Government of India could consider for dealing with the situation. It may be worthwhile to clarify the issues connected with fertiliser subsidies specifically in the context of Hopper's observation to enable an objective and realistic appreciation of the problem.