India's total fertiliser subsidy burden in the current financial year is more than double the budgetry allocation of Rs 24,500 crore (Rs 245 billion) as announced in the Budget.
Highlighting the achievements of his ministry, Fertilizer Minister Ram Vilas Paswan said that the total subsidy burden for the fertiliser industry during the current year is estimated at Rs 50,204 crore (Rs 502.04 billion) inclusive of Rs 8,083 crore (Rs 80.83 billion) backlog of the previous year.
He said out of Rs 8,083 crore, payment of Rs 4,000 crore (Rs 40 billion) has already been made and rest payment would be made by June this year to clear the dues of last year.
Paswan made it clear that interest of farmers will be taken care of while considering the rationalization of subsidy otherwise the cost of production will go up and reduce the farmers' profit.
The demand for urea went up from 214.07 lakh tonnes in 2004-05 to 249.46 lakh tonnes in 2006-07 while DAP demand increased from 70.59 lakh tonnes to 81.29 lakh tonnes and MOP from 23.02 lakh tonnes to 33.23 lakh tonnes during the period.
Production of urea increased to a record level of203.09 lakh tonnes in 2006-07 from 196.24 lakh tones in 2000-01. However, production of DAP remained stagant at 48.57 lakh tonnes after reaching a peak at 52.36 lakh tonnes in 2003-04 due mainly because of feed stock problems. Shortfall was met by importing larger quantity so as to meet the demand in time and in sufficient quantity.
To streamline distribution and movement of fertilizers at the consumption points, states are expected to prepare month wise, district-wise and company wise supply plans in consultation with the fertilizer companies, Paswan added.
