Subsidised fertiliser was being smuggled out: Govt
New Delhi: The Government on Friday said that subsidised fertiliser was being smuggled out to countries like Nepal and asked state governments to take stringent action.
Replying to supplementaries during Question Hour in Rajya Sabha, Minister of State for Chemicals and Fertilizers Srikant Kumar Jena said smuggling was taking place from different parts of the country.
The Centre, he said, has written to chief ministers to take stringent action against urea dealers who may be involved in smuggling.
States like Uttar Pradesh need to take steps to prevent smuggling, he said.
Explaining compulsions behind the recent decision to hike urea prices, Jena said the cost had not changed in the past eight years compared to two price revisions during NDA rule.
NDA government raised urea prices by 20 percent when global rates were USD 110 per ton. International rates have risen three-fold since, warranting a 10 percent hike in urea
prices from April 1, he said.
"The Government has decided to increase the MRP of urea by 10 percent from the current Rs 4,830 per ton to Rs 5,310 per ton with effect from April 1, 2010," he said adding urea would remain under government control.
The Minister said it was difficult to predict fertilizer subsidy for the next fiscal as consumption was not known.