Fertiliser subsidy may jump 55% to record Rs 2.5 lakh crore this fiscal

WILL ENSURE THERE IS NO SHORTAGE OF FERTILISERS IN INDIA DURING KHARIF AND RABI SEASONS, SAYS GOVT

India's fertiliser subsidy bill is likely to shoot up by 55 per cent to record Rs 2.5 lakh crore this fiscal as the government will provide additional funds to make up for the spike in cost from higher import price, top sources said on Thursday.

The government will ensure that there is no shortage of fertilisers in the country during the kharif (summer-sown) and rabi (wintersown) season and it is already in talks with major global producers to import key soil nutrients, they added.

According to the sources, Union Chemicals and Fertilisers Minister Mansukh Mandaviya is likely to

visit many countries, including

Saudi Arabia, Oman and Morocco, soon to secure imports on both short and long term basis.

The government is working hard to ensure there is no shortage of fertilisers in the country," said a top government functionary, and added that the country has sufficient stocks for the ongoing kharif season, and there would be no problems during the rabi season as well.

It is to be noted that fertiliser consumption during rabi season is 1015 per cent more compared to the summer crops.

The government will not increase retail prices of urea and also provide adequate subsidies to ensure that the maximum retail prices of non-urea fertilisers remain at the present level, the sources said.

The government has taken the historic decision on the fertiliser front that it will not pass on the burden to farmers, the sources said, adding that due to higher subsidy, selling price of both urea and DAP (Di-Ammonium Phosphate) are significantly lower in India

compared to countries, like US,

China and Brazil.

On Wednesday, the Union Cabinet approved a subsidy of Rs 60,939.23 crore for phosphatic and potassic fertilisers, including DAP, for the first six months of this fiscal.

The subsidy bill for 2022-23 could go up to Rs 2.25-2.5 lakh crore. Due to the COVID pandemic, the fertiliser production, imports and transportation have been disturbed globally," the top government functionary said.

The total fertilisers subsidy stood at Rs 1,62,132 crore in the 2021-22 fiscal and at Rs 71,280 crore in 201314.

Leading exporters like China, which contributes 40-45 per cent of phosphatic imports to India, reduced their exports because of reduction in production.