New Delhi: India's fertiliser subsidy bill
may come down by over a half to Rs 55,000 crore this fiscal on
cheaper imports following softening of prices overseas.
"The government is estimated to pay fertiliser subsidy
worth Rs 55,000 crore in cash this fiscal," Fertiliser
Secretary Atul Chaturvedi said here today. The fertiliser
subsidy had touched record Rs 1.17 lakh crore last year.
The total subsidy to be paid by the government this
fiscal stands at Rs 72,000 crore this fiscal, including an
arrear of Rs 17,000 crore from 2008-09, he said. Subsidy worth
Rs 35,000 crore has been disbursed so far this fiscal, he
pointed out.
A government official said prices of imported fertilisers
have come down significantly from the unprecedented level
reached in July last year, easing pressure on the subsidy
bill. India imports different fertilisers in huge quantities
to meet domestic demand.
At present, the government controls the pricing of key
fertilisers and offers funds to companies, called fertiliser
subsidy, to compensate them for selling key farm nutrients at
rates determined by it.
According to an official estimate, fertiliser companies
recover less than 15 per cent of the actual cost of farm
nutrients by selling at MRPs, while the rest is borne by the
government through the subsidy bill.
Bureau Report
First Published: Wednesday, October 21, 2009, 20:55