Business Daily from THE HINDU group of publications
Wednesday, Sep 12, 2007
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Business Daily from THE HINDU group of publications Wednesday, Sep 12, 2007 ePaper |
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Agri-Biz & Commodities
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Agricultural Policy Industry & Economy - Fertilisers Money & Banking - Govt Bonds GoM will discuss issue of bonds to fert sector
Government plans to retire subsidy claims Explicit cash provision in70:30 ratio Additional cash subsidy promised
Phalguna Jandhyala New Delhi, Sept. 11 The Union Government is planning to retire outstanding subsidy claims of fertiliser manufacturers through issue of bonds and explicit cash provision in a 70:30 ratio. “We have learnt that the Finance Ministry has agreed to give between Rs 12,000 crore and Rs 13,000 crore in terms of bonds and also provide Rs 5,000 crore additional cash subsidy to the fertiliser companies during the current fiscal. This is one of the major issues that will be discussed by the Group of Ministers (GoM) when they meet here on Wednesday,” a senior official in the Department of Fertilisers (DoF) told Business Line. The official added that the decision on the issue was taken at a recent meeting of officials from the DoF and the Finance Ministry. The bonds that fertiliser companies will get would be similar to what petroleum companies are provided. The increase in the cost of gas and urea has pushed up the fertiliser subsidy for the current financial year at Rs 48,000 crore of which the Government in the Budget has allocated Rs 22,450 crore. Apart from this the GoM, headed by Agriculture Minister, Mr Sharad Pawar, is also likely to look into alternate subsidy mechanisms. “While the DoF is keen on having a nutrient-based subsidy mechanism in place, the Finance Ministry has proposed to give direct subsidy to farmers. So this is the other major issues on the agenda that the GoM will look into,” he said. Under the nutrient-based subsidy that the Department has proposed, a wide range of fertilisers customised to the specific needs of a farmer will be available.
More Stories on : Agricultural Policy | Fertilisers | Govt Bonds
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