The Hindu Business Line : Nutrient-based fertiliser subsidy will entail additional Rs 1,200-cr outgo: Paswan

Subsidy factor: The Minister for Chemicals and Fertilisers, Mr Ram Vilas Paswan, with the Steel Secretary, Mr R.S. Pandey, at the Economic Editors’ Conference in the Capital on Wednesday. —

Our Bureau

New Delhi, Nov 14 The Union Minister for Chemicals and Fertilisers, Mr Ram Vilas Paswan, on Wednesday said the proposed nutrient-based subsidy regime on fertilisers would result in an additional outgo of Rs 1,200 crore, but it will benefit the farmers.

“In the current system, we are mainly giving subsidy on nitrogen, phosphorous and potassium through specific products such as urea, di-ammonium phosphate (DAP), muriate of potash (MoP) and other complex fertilisers. Important nutrients like sulphur and zinc are not getting subsidy, leading to degradation of the soil. This lacuna would be addressed through a nutrient-based subsidy regime”, he said at the Economic Editors’ Conference here.

The Minister claimed that in the new regime, prices of urea, DAP and MoP would remain the same. The average price of complex fertilisers would decline from Rs 8,000 to Rs 6,500 a tonne. “The subsidy bill will go up by Rs 1,200 crore, but farmers will benefit,” he added.

Mr Paswan also announced a one-time grant of Rs 200 crore for revival of Fertiliser and Chemicals Travancore Ltd (FACT) and the money would be released within a month’s time. Expressing concern over no new urea plants being commissioned in the country in the last 15 years, he said that import this fiscal would rise to 60 lakh tonnes (lt), from 47 lt in 2006-07. Consumption in 2007-08 is estimated at 264 lt, with domestic output at 203 lt.

DAP and MOP imports this year will touch 26 lt and 34 lt, he said.