Budget proposes Rs 10k crore to clear fertiliser subsidy dues: Ananth Kumar

To reduce the burden of fertiliser subsidy backlogs, a special banking arrangement of Rs 10000 crores has been approved in this budget to clear fertiliser subsidy dues, said Ananth Kumar, Minister of Chemicals and Fertilizers while addressing the media on Monday.

He added that the overall budget allocation for the Department of Fertilizer for the year 2017-18 is 74,235 crores. Stating that fertiliser has been one of the fastest growing sectors in the last quarter, the Minister said, “Fertilisers, along with power, has been the torchbearer of achievement of this government.” 

According to Ananth Kumar, the government has taken key measures to make the country self-sufficient in urea and other fertilisers like promoting energy efficiency in urea production, maximising indigenous urea production, timely import of urea and other fertilisers, prepositioning of fertilisers with the states during lean season to ensure adequate supply in the season and rationalising the subsidy. Such steps have resulted in highest ever production of 245 lakh metric tonne (LMT) of urea previous year, without adding additional capacity. Indigenous urea as well as imported urea have been neem coated. This has resulted in an increase in farm yield with less urea required and helped check black marketing and hoarding of urea.