IFFCO Managing Director Dr. U.S. Awasthi has suggested the sooner the argument between the Finance Ministry and the Fertilizer Ministry on whether urea should be brought under nutrient based subsidy program (NBS) is ended the better.
Tweeting on the issue, Dr. Awasthi has given the Finance Ministry’s advocacy of NBS in urea the thumbs up. He has expressed his optimism about a positive outcome soon. Informed sources say NBS in urea will not only lead to the much needed rationalization of subsidy but also balance the effect of fall in crude prices as well as its impact on fuel prices.
@drusawasthi: #IFFCO happy to read that# Finance Ministry is pushing for# NBS in @Urea #Fertiliser Ministry is requested to respond +in soil,farmers interest.”
Fertilizer subsidy paid to the companies has lately reduced substantially.
Urea prices are fixed at a maximum retail price (MRP) and the government pays manufacturers the difference between the cost of production and MRP.
The country’s urea production has remained at 22 million tonnes (mt) since 2007-08, while current demand is about 30mt, forcing the country to meet the shortfall of 8mt through imports.
