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Submitted by Sisay Menji on
Well Dr. Shanta I agree with most of your ideas. It is clear that we need to make price shows the cost to the society of using a given product, the same to fertilizers. Most importantly interventions to development should be justified only if they benefit the poor(the majority), if they are going to serve few large farmers using advanced production systems why did the governemnt subsiize it. I don't see the necessity of subsidizding, but I think governments get into subsidy trap, because after they start the subsidy it's harder for them to remove it in fear of political opposition The most important thing is governments need to invest on parts that have higher returns, why don't governments give much weight in making poor farmers to have market access, infiormation, good infrastructure and access to credit. I think subsidizing fertilizers may help a given farmer to use fertilizer, but at the same time much of the subsidy is going to middlemen, but why don't the government give credit access to the farmers so that he can buy the fertilizer and hence reflect fertilizer prices in output prices. It may be though that such moves will increase food prices and make the poor not to buy food. but why don't the government give the subsidy that has been given to fertilizer to purchase of food to the poor. Shanta I need your say on these.