The fertiliser industry had another blow when the government today said that the present circumstances were not encouraging enough to implement the Nutrient Based Subsidy for urea.
Minister of State for Chemicals and Fertilisers Srikant Kumar Jena said, “experience from NBS in Phosphate (P) and Potash (K) fertilisers is not encouraging to introduce NBS for urea.”
NBS is the latest subsidy formula that gives subsidy on fertilisers not according to products but nutrients in the fertilisers. The Indian fertiliser industry has been calling for NBS in urea sector since it was introduced for P and K fertilisers in 2010.
At the annual conference of Fertiliser Association of India, Jena added the experience from NBS is completely opposite to what was expected, while admitting that subsidising urea is creating imbalance in fertiliser usage.
Also, he cautioned the international fertiliser industry (suppliers) not to take India for granted by dictating prices.
“The government cannot afford subsidy of Rs 90,000 crore each year. If the situation (of high prices and high subsidy) continues, we are in a serious crisis,” he added.
