Chemical fertiliser subsidy to cost Rs 59 billion, budget management a challenge

The Ministry of Agriculture, Forests and Environment has pledged that there will be no shortage of chemical fertiliser next season. However, the ministry says managing the budget is a major challenge, as around Rs 59 billion is needed for the fertiliser subsidy.

According to ministry Secretary Dr Rajendra Prasad Mishra, at current prices a subsidy of about Rs 120 per kg is required for DAP fertiliser alone.

The government claims it succeeded in supplying the highest-ever volume of chemical fertiliser last fiscal year. According to the ministry, the supply system has been strengthened and there is adequate stock of fertiliser for the winter.

Agriculture, Forests and Environment Minister Geeta Chaudhary said the government is moving ahead with policy preparations covering everything from fertiliser management to linking the agriculture and forestry sectors with industry and markets. Since the supply of chemical fertiliser depends on the international market, the government is working on management measures to prevent shortages.