Cabinet to decide on fertilizer subsidy today
New Delhi: Amid opposition from key allies, including Fertilizer Minister and DMK leader M K Alagiri, the government is likely to take a decision on whether or not to implement the nutrient-based subsidy for the fertilizer sector.
"The Cabinet will take the decision tomorrow on whether to introduce the new nutrient-based subsidy (NBS) scheme from next year," a senior government official said.
Last week, Fertliser Minister M K Alagiri had met Finance Minister Pranab Mukherjee and sought deferring NBS as the industry did not give any written assurance on not increasing prices.
Fertilizers are sold at government-fixed prices, which are lower than their costs of production or import. The difference is met through subsidy.
At present, the subsidy is given on product basis, like subsidy on urea and DAP. The government plans to replace it with NBS under which the subsidy is given on the basis nutrients like nitrogen phosphorus and potash in the product.
The NBS does away with maximum retail price (MRP). It proposes to replace the current system of giving subsidy to the industry with direct assistance to farmers.
Besides, the government also wanted to cap the subsidy at Rs 50,000 crore, sources said. The fertilizer subsidy last fiscal stood at over Rs 1 lakh crore.
More from India
More from World
More from Sports
More from Entertaiment
- BJP MP Yogi Adityanath compares Akhilesh Yadav with 'Aurangzeb' and 'Kans'
- Acrimonious remarks of political leaders during UP elections
- UP polls: When fans played spoilsport for SP star campaigner Dimple Yadav
- Have political parties diverted from development agenda in UP elections?
- Pakistan cancels licenses of weapons issued to Hafiz Saeed and his aides
- Reliance Jio's tariff plan from April 1; voice calls, roaming to be free: Mukesh Ambani
- BMC exit poll: BJP predicted to score big in neck-and-neck battle with Shiv Sena
- How Kashmiris use children for 'meri jaan Pakistan' type 'freedom struggle' - WATCH
- Reliance Jio Prime Membership at Rs 99: All you need to know about the plan
- 'Intolerance brigade' attacks Zee News' #FatehKaFatwa host Tarek Fateh - WATCH