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IndianDespite a reduction in costs necessitating a lower subsidy requirement, govt has retained subsidy at current-year levels, which can help reduce previous years’ dues
R. Sree Ram

 

Higher spend on MGNREGS and rural roads can increase employment opportunities and help create productive assets for rural areas. Photo: Mint
EXPECTATIONS: HIGH
DELIVERY: HIGH
Measures:
Fertilizer subsidy for 2017-18 is at Rs70,000 crore, similar to 2016-17. According to ICRA, subsidy for P&K (phosphorous and potash) fertilizers in the nutrient-based subsidy scheme has been hiked marginally.
Agricultural credit target for 2017-18 is fixed at Rs10 trillion, an 11% increase from the 2016-17 target of Rs9 trillion.
Budgetary provision for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is at Rs48,000 crore, up from the Rs47,499 crore revised estimate for FY17.
Total allocation for rural, agriculture and allied sectors is Rs1,87,223 crore, 24% higher than a year ago.
Coverage of crop insurance scheme FasalBimaYojana is to be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19. Provision of Rs5,500 crore for this scheme in 2016-17 was raised to Rs9,000 crore.
A dedicated micro irrigation fund is to be set up at the National Bank for Agriculture and Rural Development (NABARD), with an initial corpus of Rs5,000 crore.
Rural roads construction scheme Pradhan Mantri Gram SadakYojana (PMGSY) gets Rs19,000 crore. Adding the contribution of states, an amount of Rs27,000 crore is budgeted to be spent on PMGSY in 2017-18.
Coverage of the National Agricultural Market (e-NAM) will be expanded from the current 250 to 585 markets to enable farmers to get better prices.
The government to support computerization and integration of Primary Agriculture Credit Societies (PACS), which act as the front end for loan disbursements.
Government plans to integrate farmers who grow fruits and vegetables with agro processing units for better price realization and reduction of post-harvest losses.
A model law on contract farming is to be prepared and circulated among states for adoption.
An expert panel is to be constituted to study and prepare a framework to integrate spot and derivatives markets for commodities.

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Impact:
Despite a reduction in costs necessitating a lower subsidy requirement for 2017-18, the government has retained subsidy at current-year levels. This can help reduce previous years’ subsidy dues which are pegged at around Rs32,000 crore. According to analysts, subsidy dues can see notable reduction, though they may not be wiped out completely.
Hike in subsidy for P&K fertilizers is positive for complex fertilizer manufacturers and traders who are facing pressure on realizations and suffering inventory losses, according to ICRA.
Higher spend on MGNREGS and rural roads can increase employment opportunities and help create productive assets for rural areas.
Higher credit target for agriculture and computerization, and integration of Primary Agriculture Credit Societies to increase fund flow in rural areas. Model law on contract farming will help streamline credit flow.
Focus on irrigation and crop insurance to help mitigate climate vagaries.
A robust market framework for commodities can provide better price signals and benefit farmers, though risk of volatility increases as well.
Stocks in focus:
Coromandel International Ltd, Deepak Fertilisers and Petrochemicals Corp. and National Fertilizers gained in the range of 4-6%. The hike in subsidy for P&K fertilizers is expected to benefit makers of complex fertilizers.
Shares of Rashtriya Chemicals and Fertilizers Ltd and Chambal Fertilisers and Chemicals Ltd lost in the range of 1% to 2.7%. According to ICRA, the continuing backlog in fertilizer dues can weigh on the financial profile of the sector.R. Sree Ram

http://www.livemint.com/Money/xVIK8zQLZut6MIGMjZ9qwI/Budget-2017-The-farm-sector-impact.html

Messages to Farmers

  • Obtain quality fertilizers from reputable suppliers especially FEPSAN members
  • Store unused fertilizer away from children, fire, rain and entry of foreign material.
  • Form groups/associations to benefit from group/association dynamics
  • Allow your crops to fully mature to get quality and value
  • Report adulterated fertilizer to the appropriate authority

Upcoming Events

  • International Training Organized by IFDC & IFA, Date: October 2 – 6 2017, Venue: Marrakesh, Morocco. Read more
  • International Conference Organized by I-conference / OCP, Date: October 18 – 19 2017, Venue: Abidjan, Côte d’Ivoire. Read more
  • 3rd AFAAS Africa-Wide Agricultural Extension Week 2017, Date: 30 October to 3 November 2017. Venue: Durban, KwaZulu Natal, South Africa.  Read more
  • IFDC’s 2-week USA Training & Study Tour, Dates: August 21 – September 1, 2017, Venue: USA (Alabama, Arkansas, Illinois, Missouri, Tennessee and Washington, D.C.)  Read more
  • AGRIKEXPO & NABG Conference 2017, Date: September 25-27, 2017. Venue: International Conference Centre, Abuja, Nigeria,.Read more
  • 31st Annual Argus FMB Europe Fertilizer conference, Date: 18 – 20 October 2017, Venue: W Hotel in Barcelona. Read more.
  • Urban Agri Summit 2017, Date: 7th - 8th September, 2017, Venue: Johannesburg, South Africa. Read more
  • IFDC International Training Program, Date: November 6-10, 2017, Venue: Arusha, Tanzania. Read more
  • 5th Addis Agrofood Agriculture, Agricultural Machineries, Food, Food Technologies and Packaging Exhibition, Date: 08-11 December 2017, Venue: Addis Ababa, Ethiopia. Read more

Fepsan Members

  


      
         

 

    


     
                                                   

Mission

To provide a platform for the stakeholders in the public and private sectors of the fertilizer industry to develop effective public private partnerships in order to ensure timely supply of adequate quantity and quality fertilizers; and to promote professional, moral and ethical practices in the industry.

Vision

Attain improved productivity and environmental sustainability of Nigerian Agriculture through balanced and judicious use of fertilizers....Attain improved productivity and environmental sustainability of Nigerian Agriculture through balanced and judicious use of fertilizer...................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Contact

2nd Floor Bank of Industry Building
18 Muhammad Buhari Way, Kaduna, Nigeria.
Mobile: +234 (803) 3174409
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2nd Floor Bank of Industry Building 
18 Muhammad Buhari Way, Kaduna, Nigeria. 
Mobile: +234 (803) 3174409...................sssss