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FinMin mulls phasing out urea subsidy in 3 years

Source : BUSINESS_STANDARD
Last Updated: Sat, Dec 08, 2012 18:50 hrs

pThe finance ministry is considering phasing out the urea subsidy in the next three years starting from the current financial year Almost half the fertliser subsidy is now for ureappA proposal on this has been sent to Finance Minister P Chidambaram If approved a cabinet note will be circulated Government officials said as the political environment was not conducive for such a move the minister would tread cautiously The proposal says the revised budget estimates on this count for the year should be cutppOfficials said the finance ministry planned to go ahead with the proposal at the earliest but the Prime Minister&rsquos Office was not very comfortable the fertiliser ministry was also opposed When asked Srikant Jena minister of state for fertiliser raised questions over the entire exercise of developing a system for direct transfer of the subsidyppUrea pricing is regulated by the government It is currently sold at Rs 5360 a tonne for agricultural purposes The fertiliser ministry proposed to raise the price by 10 per cent earlier this year it was referred back by the CabinetppThe last time the price of this key nutrient was revised was in 2010 by 10 per cent from Rs 4830 to Rs 5310 a tonne They went up recently by another Rs 50 a tonnep


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