Fertilizer sop to fall to ₹1.8 tn in FY24
₹1.7-1.8 trillion because of lower international prices and smaller urea imports, said chemicals and fertilizer minister Mansukh Mandaviya on Wednesday. In FY23, the Centre spent ₹2.25 trillion on fertilizer subsidies, as per revised estimates. The budgeted estimates for the ongoing fiscal year is ₹1.75 trillion.
“The subsidy bill is estimated to be lower this year at around ₹1.7-1.8 trillion because of the fall in global prices. We have not increased retail prices to reduce subsidy," Mandaviya said. “When the global rates skyrocketed in the last financial year, the government increased subsidy and kept the retail prices of urea, di ammonium phosphate and other fertilizers to protect farmers’ interest," Mandaviya added.
On the ongoing Red Sea tension, Mandaviya said that India has an adequate stock of fertilizers to meet requirements for the summer. “The Red Sea crisis will not have an impact on Indian trade, including fertilizer imports as the government is intervening and the Indian Navy is providing security to get vessels in the country safely. Indian fertilizer cargoes are now coming via the Cape of Good Hope that has raised freight costs significantly." “There will be no shortage of fertilizers next Kharif season as we reserve stocks for one season in advance to avoid shortage," Mandaviya said.
Urea imports are at 4-5 million tonnes this fiscal, lower than 7.5 mt imported in the previous year, helped by higher domestic production and increased use of nano-liquid urea. “To date, we have 7 million tonnes of urea, 1 mt of muriate of potash, 2 mt of diammonium phosphate, 2 mt of single superphosphate and 4 mt of NPK (nitrogen, phosphorus, and potassium) fertilizers," Mandaviya said. The geopolitical tension around the
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