Page 2 - Urea Subsidy
Govt considering options to decontrol urea, says Fertiliser Minister
The government is seriously considering options for decontrolling urea by either fixing a nutrient-based subsidy(NBS) rate or making direct payment of subsidy to farmers' account, Fertiliser Minister Sadananda Gowda said on Wednesday. In 2010, the government had launched the NBS programme under which a fixed amount of subsidy, decided on an annual basis, is provided on each grade of subsidised phosphatic and potassic (P&K) fertilizers, except for urea, based on the nutrient content present in them. "As far as change in the urea policy is concerned, we are open to suggestions. It can be NBS for urea or direct subsidy to the farmers account with decontrol of fertilizer sector. These are some of the alternatives which are under discussion," Gowda said while addressing an event organised by the Fertiliser Association of India (FAI) here. He further said that the government is "actively pursuing the issue of revision of fixed cost under urea policy" and added that any change in policy
 "Govt considering options to decontrol urea, says Fertiliser Minister")
Most non-urea fertiliser subsidies unchanged; Rs 22875 to be spent on sops
A decision in this regard was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi
 "Most non-urea fertiliser subsidies unchanged; Rs 22875 to be spent on sops")
Cabinet likely to discuss change in urea subsidy
The Union Cabinet is expected to consider a change in the New Urea Policy of 2015, to enable disbursal of higher subsidy to companies which perform better, based on the import parity price (IPP). A panel of ministers at a meeting scheduled for Friday is also expected to approve unrestricted export of all certified organic agricultural products.On urea, officials said the import parity price is calculated on the basis of the landed price. Incidentals like customs and port loading and handling charges are not included. This sometimes leads to less disbursal of subsidy to fertiliser companies, when the landed price falls sharply in international markets. This is because the subsidy is capped up to the IPP.If customs duty and port handling charges, estimated to be 5.65 per cent, are added to the landed price on any day for the purpose of subsidy calculation, it will lead to higher outgo for companies. The subsidy for urea is calculated on the basis of variable cost (mainly gas prices), ...
 "Cabinet likely to discuss change in urea subsidy")