Indian Prime Minister Narendra Modi executed a major shake-up in his cabinet this week. The move brought in 15 new cabinet members and 28 ministers of state (sub-cabinet) officials.
D. V. Sadanand Gowda stepped down as Minister of Chemicals and Fertilizer just before the Prime Minister’s office announced the changes. He was replaced by Shri Mansukh Mandaviya, who will also be the Minister of Health and Family Welfare.
International traders said they were not familiar with Mandaviya. Local media described him, and many of the new cabinet members, as younger and more willing to make changes within their assigned ministries.
Modi came under harsh criticism for his handling of COVID-19 related issues, such as availability of oxygen tanks and bed space in hospitals. He also faced a large series of demonstrations in the major cities against plans to reorganize the agricultural markets. Mandaviya will be in charge of both these sensitive areas.
One international trader suggested that the changes in the cabinet might also lead to changes in leadership in the state-owned industries, such as MMTC and IFFCO. Another area that might be addressed, said a source, is adjusting responsibility for importing urea.
Currently, only MMTC and RCF are allowed to import urea for agricultural purposes. This urea qualifies for the large subsidies that have kept the price to farmers at around $72/mt. Urea for industrial use is not subject to the subsidy and can be imported by any company.