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`Give subsidy direct to farmers'
Ambarish Mukherjee Harish Damodaran
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New Delhi
Feb. 28
The Finance Minister, Mr P. Chidambaram, has called for working out an alternative method of delivering fertiliser subsidy directly to the farmer, against the present system of reimbursing producers. "The fertiliser industry has agreed to work with the Department of Fertilisers to conduct a study and find a solution. Based on the report, the Government intends to implement a pilot programme in at least one district in each State in 2007-08," he added.
According to Department of Fertilisers officials, Tata Consultancy Services has already been entrusted with the job of preparing the report and are likely to make a presentation "in the next 4-6 weeks".
Later at a post-Budget press conference, Mr P Chidambaram, conceded that the provision for fertiliser subsidy made in the Budget was inadequate.
"We may have to meet the additional expenditure," he said. When asked whether this would also involve raising fertiliser prices, Mr Chidambaram said: "I cannot say anything on prices now."
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