India's fertiliser subsidy is likely to touch Rs 1,02,000 crore this fiscal, about Rs 14,000 crore less than the revised estimate, even as the government says it remains vigilant to thwart any profiteering strategy of global farm nutrient sellers.
"Our initial estimate of the subsidy was Rs 1.19 lakh crore though it was later revised to about Rs 1.16 lakh crore as the prices had come down a bit. We are trying to keep it at Rs 1 lakh crore but the final dole-out burden may touch Rs 1.02 lakh crore," Fertiliser Secretary Atul Chaturvedi told PTI.
The fertiliser subsidy bill is estimated to surge to Rs 1,02,000 crore from only Rs 45,659 crore in 2007-08.
The huge rise in the dole-out burden has forced the fertiliser ministry to try and alter predictable elements in its import strategy to avoid falling prey to the profiteering methods employed by global sellers keeping in view that India has put in place an unlimited fertiliser subsidy system.
"When talks of unlimited subsidy crop up, it is felt that people are using our subsidy regime to their advantage in the international market," Chaturvedi said.
"Those in global markets should not be in a position to speculate how much we are going to buy and when. If you become very predictable, the seller will take the advantage. Your strategy should counter the seller's strategy, or else, the sellers will have their way."
India imported 45 lakh tonnes of DAP and 35 lakh tonnes of urea till October, which contributed the most to the subsidy bill.
At present, the industry provides main fertilisers, such as urea, DAP and MOP, to farmers at rates fixed by the government which, in turn, compensates the companies for selling at prices determined by it.
