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PS Gahlaut Hails Cabinet Approval for DAP Subsidy and Crop Insurance Overhaul
New Delhi [India], February 24: In a recent landmark decision, the Indian government approved a significant financial package aimed at supporting Di-Ammonium Phosphate (DAP) fertilizer manufacturers and revamping crop insurance schemes. PS Gahlaut, Managing Director of Indian Potash Limited (IPL), offers his insightful perspective on the implications of this policy shift, emphasizing the importance of [...]
New Delhi [India], February 24: In a recent landmark decision, the Indian government approved a significant financial package aimed at supporting Di-Ammonium Phosphate (DAP) fertilizer manufacturers and revamping crop insurance schemes. PS Gahlaut, Managing Director of Indian Potash Limited (IPL), offers his insightful perspective on the implications of this policy shift, emphasizing the importance of reducing dependency on fertilizer imports and bolstering domestic production to ensure long-term sustainability. He opines, “This move, which involves a hefty subsidy of ₹3,850 crore for DAP fertilizers and an extended ₹69,515 crore outlay for crop insurance until 2025-26, is a crucial intervention to stabilize the agricultural sector.”
Dr. Gahlaut acknowledges the immediate relief these measures provide to farmers, particularly in light of rising global fertilizer prices and the increasing volatility of international markets. “The subsidies are expected to lower the cost burden on farmers, enabling them to access essential inputs more affordably. Similarly, the revamped crop insurance schemes aim to offer better risk coverage, safeguarding farmers against unpredictable weather patterns and crop failures. However, while these initiatives address short-term challenges, the need for a more strategic approach to fortify the agricultural sector against future disruptions,” says PS Gahlaut.
One of the primary concerns Dr. Gahlaut raises is India’s heavy reliance on imported fertilizers, which accounts for over 50% of its total fertilizer needs. This dependency, particularly acute in the case of potash where nearly 90% is imported, leaves the country vulnerable to global supply chain disruptions and price fluctuations. PS Gahlaut argues, “This scenario underscores the urgent need to develop a robust indigenous fertilizer industry. He advocates for leveraging India’s substantial reserves of natural minerals, such as the phosphate rock found in Rajasthan, which remains significantly underexploited.”
