Govt reviewing fertiliser subsidy, may decide to hike it

International prices of raw materials for some key crop nutrients such as di-ammonium phosphate (DAP) and 22 grades of P&K fertilisers have increased sharply.

The government is reviewing its fertiliser subsidy and may enhance it, as prices of some farm chemicals have risen sharply on account of costlier imports amid estimates that a normal monsoon would increase domestic demand, an official said on Sunday.

Millions of farmers are waiting for the June-to-September monsoon to raise a variety of summer crops, including paddy, pulses, gram, onions and coarse cereals, etc. (Mint)

Union fertiliser minister Sadananda Gowda on May 13 discussed the current nutrient-based subsidy regime—the mechanism by which the Centre disburses the subsidy to manufacturers—with regard to phosphatic and pottassic (P&K) category of fertilisers with home minister Amit Shah, finance minister Nirmala Sithraman and agriculture minister Narendra Singh Tomar, the official said on condition of anonymity.

International prices of raw materials for some key crop nutrients such as di-ammonium phosphate (DAP) and 22 grades of P&K fertilisers have increased sharply. Most of these fertilisers have seen a jump of over 50% in prices. Some fertiliser companies have increased prices only last month, even though imports were becoming increasingly costlier, including DAP, which is a crucial input during sowing.

Millions of farmers are waiting for the June-to-September monsoon to raise a variety of summer crops, including paddy, pulses, gram, onions and coarse cereals, etc. “We will ensure availability of fertilisers at subsidised rates to all farmers. We are considering all measures including enhancing subsidy, if required, to ensure enough stocks across the country,” the official said.

“We expect a nearly 10% increase in fertiliser demand,” an official of the agriculture ministry said.