The government today pegged gross fertiliser subsidy for this year at Rs 1,16,278 crore, over Rs 16,000 crore more than its earlier estimate, which was arrived at keeping in view global nutrient price trends.
"At present, the fertiliser subsidy requirement for 2008-09 projected at revised estimates is Rs 1,16,278 crore (gross) or Rs 1,13,308 crore (net) including the carryover liability of Rs 5,000 crore from 2007-08," Minister of States for Chemicals and Fertilisers B K Handique said in a written reply in the Rajya Sabha.
However, Chemicals and Fertilisers Minister Ram Vilas Paswan had last month said the subsidy for the current fiscal is estimated to come down to about Rs 1,00,000 crore from the first estimate of Rs 1,19,000 crore.
The first projection was low because of a sharp fall in the prices of fertilisers in overseas markets, which was expected to reduce the country's nutrient import bill.
The urea price in the global market declined to $255 a tonne from $860 in July, while the DAP price has come down to $850 a tonne from $1,300. Prices of other inputs like sulphur, phosphoric acids and ammonia have also plunged.
The industry, which sells fertiliser at subsidised rates to farmers, gets reimbursement from the government.
India has imported 45 lakh tonnes of DAP and 35 lakh tonnes of urea till October. Of the total subsidy, imports of DAP and muriate of potash account for the maximum share.
