Fertiliser ministry seeks Rs 15,000 cr subsidy for July-Sept

New Delhi: The fertiliser ministry has sought Rs 15,000 crore towards subsidy from the finance ministry for the July-September quarter of the current fiscal.

“A sum of Rs 15,000 crore is sought as fertiliser subsidy for September quarter. We are analysing it and will soon decide on the amount to be paid to them,” said a senior finance ministry official.

Earlier in September, the finance ministry had approved a Rs 5,500 crore Special Banking Arrangement (SBA), under which fertiliser companies can take loans against subsidy receivables.

This was against the demand of additional funds of Rs 15,500 crore under SBA.

Following this, the fertiliser ministry had in October sought additional Rs 35,000 crore funds till march, over and above the budgeted amount, towards subsidy payment to companies saying the current situation is of “grave concern”.

The government has budgeted the fertiliser subsidy for current fiscal at Rs 65,971.50 crore, roughly around the same level of Rs 65,974 crore budgeted in 2012-13.

Of the fertiliser subsidy in current fiscal, the government will provide Rs 15,544.44 crore for imported urea, Rs 21,000 crore for indigenous (urea) fertilisers, and Rs 29,426.86 crore for decontrolled fertilisers (DAP, MOP and complexes) for supplying the inputs to farmers at a subsidised rate.

PTI