Revision / Rationalisation of Current Subsidy System

Formulation of policy for existing urea units beyond Stage III of New Pricing Scheme is under consideration of Government.

In respect of P&K fertilizers, the Government is implementing Nutrient Based Subsidy (NBS) Policy w.e.f. 1st April, 2010. Under the Policy, a fixed amount of subsidy decided on annual basis is provided on each grade of subsidized P&K fertilizers, depending upon its nutrient content. MRP of P&K fertilizers is fixed by the fertilizer companies. Since NBS Policy has been under implementation for last two and half years only and it is yet to stabilize and also a formal study is yet to be conducted on its impact, there is no proposal to revise the current subsidy policy on P&K fertilizers.

The Kelkar Committee Report is under consideration of the Government and the Government has not yet taken a view on the report or on any of the recommendations.

There is a tendency among the farmers to use more urea which is low priced compared to usage of P&K fertilizers. The actual consumption of various fertilizers in the current ongoing Rabi crop would be known only by the end of March 2013 when the Rabi Season comes to an end.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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