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Govt considering options for decontrolling urea: Fertiliser Minister
Dec-05-2019

Fertiliser Minister Sadananda Gowda has said that the government is seriously considering options for decontrolling urea by either fixing a nutrient-based subsidy (NBS) rate or making direct payment of subsidy to farmers' account. In 2010, the government had launched the NBS programme under which a fixed amount of subsidy, decided on an annual basis, is provided on each grade of subsidised phosphatic and potassic (P&K) fertilizers, except for urea, based on the nutrient content present in them.

Gowda further said that the government is actively pursuing the issue of revision of fixed cost under urea policy. He also said that any change in policy should protect the interest of farmers, industry and help conserve resources. He stated that currently, urea is the only controlled fertilizer and is sold at a statutory notified uniform sale price and it is the most commonly used fertiliser because it is highly subsidised. Noting that the government is aware of the challenges faced by the industry, he said, however there are no short cut solutions to the structural problems but the government is working very hard to find possible way out.

The minister further said that as far as fertilizer policies and payments are concerned, the government is in continuous dialogue with all the stakeholders and various wings of the government. However, he said there is a need to keep in mind the government's fiscal limitation in order to balance sometimes the conflicting requirement and meet the expectation of all stakeholders. He also urged the industry to redefine the role of fertilisers industry by introducing newer forms of fertilisers and lauded efforts of cooperative fertiliser firm IFFCO in developing 'Nano fertilisers'.

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