FAI Chairman 2025 appointment Sailesh C. Mehta aims to reform India’s fertiliser policy through nutrient-based subsidies and DBT. Learn about his plans and implications for agriculture.
In a significant change of leadership, Sailesh C. Mehta, managing director of Deepak Fertilizers & Petrochemicals Corporation Ltd (DFPCL), has been appointed as the new Chairman of the Fertiliser Association of India (FAI). He succeeds N. Suresh Krishnan, MD of Paradeep Phosphates Ltd
Mehta brings over 40 years of experience to the role and had previously led the FAI’s Western Region for more than five years He also heads Mahadhan AgriTech Ltd, a DFPCL subsidiary
Vision for Farmer-Centric Growth
Upon his appointment on 30 May 2025, Mehta stated he hopes to function as a “bridge between government, industry and farmers”, aiming to amplify India’s farmer productivity on the global stage Emphasizing sustainability, he spoke of balanced and nutrient-efficient fertilisers as key to India’s transformation from food-deficient to agri-exporting status
Policy Clarity to Drive Investment
Shortly after his appointment, Mehta highlighted the need for clearer fertiliser subsidy policies to attract new investments. He emphasized that the phosphorus and potash (P&K) sector has operated under the Nutrient-Based Subsidy (NBS) regime, with urea not yet integrated fully
Mehta warned that lack of price controls and transparency hampers industry decision-making, especially in volatile global markets. He urged gradual decontrol and implementation of Direct Benefit Transfer (DBT) to ensure efficient subsidy delivery
Boosting Soil Health & Productivity
He raised concerns over imbalanced nitrogen-phosphorus-potassium (NPK) application, noting that soil health has suffered under skewed subsidies. Citing a study by economist Ashok Gulati, he pointed out that despite subsidies of USD 22–25 billion in the past three years, productivity gains have remained weak. The fertiliser-grain response ratio declined from 1:10 in the 1970s to around 1:2.2 today
Why This News Is Important
Relevance for Government Exam Aspirants
This development holds significance for aspirants across banking, civil services, judicial services, and defence exams, as it touches upon core economic and agricultural policies—key areas in the General Studies and Economy & Agriculture sections.
Illustrates Policy Challenges and Sector Reforms
Teaching about current subsidy structures, the shift toward Nutrient-Based Subsidies (NBS), and the potential impact of DBT on agricultural reforms are essential topics for PSCs, IAS, and banking exams.
Reflects Government-Industry Dynamics
Mehta’s role represents the interplay of industry leadership and policy advocacy, an important example of how industry bodies influence reforms—relevant to questions on economic governance and public-private partnerships.
Historical Context: Evolution of Fertiliser Policy in India
Post-Independence Subsidy Era
From the 1950s, India subsidized fertilisers to achieve food security. While it was crucial in the Green Revolution, it also led to distortions in nutrient usage—favoring nitrogen heavily.
Shift to Nutrient-Based Subsidy (NBS), 2010
Launched in 2010, NBS aimed to rationalize subsidies by tying them to nutrient content. It succeeded for P&K fertilisers, but urea remains regulated, resulting in distorted prices — ~₹5.5/kg versus ₹27/kg for salt
Growing Focus on Balanced Fertilisation
To combat soil degradation and falling nutrient-use efficiency, policymakers and industry stakeholders have emphasised balanced fertiliser usage. Introducing DBT has been discussed to replace open-ended subsidies and improve targeting.
Key Takeaways from “Sailesh C. Mehta Appointed FAI Chairman”
| S.No | Key Takeaway |
|---|---|
| 1 | Appointment: Sailesh C. Mehta became FAI Chairman on 30 May 2025, succeeding N. Suresh Krishnan. |
| 2 | Leadership & Experience: Mehta has 40+ years’ experience and led FAI’s Western Region for 5+ years. |
| 3 | Policy Advocacy: He called for clear subsidy policies, market-based pricing for urea, and adoption of DBT. |
| 4 | Sectoral Issues: Highlighted the NBS regime imbalance and the negative impact on soil health and productivity. |
| 5 | Strategic Vision: Emphasizes bridging industry, farmers, and government to promote sustainable farming. |
FAQs: Frequently Asked Questions
Q1. Who is Sailesh C. Mehta?
Sailesh C. Mehta is the Managing Director of Deepak Fertilizers & Petrochemicals Corporation Ltd. He was recently appointed as the Chairman of the Fertiliser Association of India (FAI).
Q2. What is the Fertiliser Association of India (FAI)?
The Fertiliser Association of India is a non-profit and non-trading organization that represents fertiliser manufacturers, distributors, and other stakeholders in India. It plays a key role in policy advocacy and industry development.
Q3. What is the Nutrient-Based Subsidy (NBS) Scheme?
The NBS Scheme, introduced in 2010, provides fixed subsidies for P&K (Phosphatic and Potassic) fertilisers based on nutrient content. Urea is currently outside this scheme and still price-regulated.
Q4. Why is the fertiliser subsidy policy under scrutiny?
The existing subsidy system leads to imbalanced fertiliser use, which affects soil health. Moreover, it lacks price transparency and limits private sector investment in the sector.
Q5. What is DBT in fertilisers?
DBT, or Direct Benefit Transfer, refers to a system where the government directly transfers the subsidy amount to fertiliser companies after the product is sold to farmers, ensuring better accountability and transparency.
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