Increasing Fertilizer Prices Continues to Plague Farmer

The Maharashtra government has raised concerns about rising chemical fertilizer prices.

The surge adds to the problems of farmers who are already struggling financially owing to unseasonal rain and hailstorms in Maharashtra. Unseasonal rains and hailstorms have devastated crops planted on more than two lakh hectares of land in Vidarbha, Marathwada, and sections of the state's North Maharashtra area. 

Wardha, Gondia, Chandrapur, Gadchiroli, Nagpur, and Amravati are the worst-affected districts in the Vidarbha area. Apart from agriculture, orange farming has also been harmed. 

A 5-kg bag of fertilizers now costs between Rs 170 and Rs 200. Fertilizer cost increases have resulted in increased input expenditure for farmers, particularly small and marginal agriculturists. 

State Agriculture Minister Dadasaheb Bhuse has addressed a letter to Union Minister for Chemicals and Fertilizers Mansukh Mandaviya requesting intervention from the Centre. Bhuse has recommended that the Centre direct chemical fertilizer firms stabilize prices in response to rising costs. 

"We want the Centre to ensure that farmers receive fertilizers at the old pricing set in December 2021." Fertilizer companies with sufficient old stock are selling it to farmers at higher rates beginning in January 2022," Bhuse explained. 

 Bhuse further stated in the letter that due to the good monsoon, the region under rabi crop has increased, resulting in a larger demand for fertilizers. In comparison to the previous rabi season, which encompassed 52 lakh hectares, this rabi season has seen agricultural activity spread across more than 60 lakh hectares. 

Fertilizer prices increased by 15 to 25% last year as well. Following protests from various state governments, the Centre agreed to lower the prices to assist farmers. 

According to individuals familiar with the situation, India is set to spend about $19 billion from the Union budget to compensate fertilizer companies for selling their products to producers at below-market prices.