GSFC failed to pass on fertiliser subsidy to farmers: Jena

Union Minister of State for Chemicals and Fertilizers Srikant Jena today said here that his ministry would be recovering the subsidy amount of Rs 400 crore from state-owned Gujarat State Fertilizers Company (GSFC) for not passing it on to the farmers in Gujarat.
He was addressing a Congress function here.
"In spite of getting subsidy under the nutrient-based subsidy (NBS) policy, the maximum retail price (MRP) fixed by the company continued to remain at the same level which was Rs 7,500 per tonne. In other words, the subsidy paid by the government to GSFC has not been passed on to farmers by the company," he alleged in his speech.

"This defeated the very purpose for which the subsidy is paid by the government," Jena said.
"It has been decided to recover the subsidy already paid to GSFC on account of ammonium sulphate from April 1, 2010 to the date, and not to pay any further subsidy on this grade of fertiliser," he stated.
"GSFC gets a subsidy of Rs 5,500 per a tonne of ammonium sulphate. GSFC produces around 250,000 tonnes of ammonium sulphate every year and sells it in Gujarat, Maharashtra and Rajasthan in line with the supply plan provided by the ministry. By the estimates based on the current subsidy and production of ammonium sulphate by GSFC, the subsidy claimed by the company since 2010 works out to be Rs 400 crore," he said.

Jena said after recovery of the amount from GSFC, the Centre would pass it on to the farmers.