Inaugurating a seminar on Indian fertiliser industry, jointly organised
his ministry, Ficci and South India Chamber of Commerce and Industry, Prabhu said the fertiliser subsidy in the country should be linked to the fiscal deficit.
Admitting that the subsidy level to farm sector in developed nations was higher compared to India, he said the WTO regulations did not put restrictions in providing subsidy on fertilisers.
Prabhu said the new fertiliser policy would be announced in two months. The fertiliser ministry had already announced a draft policy and wanted a national debate on it, so that the aberrations of the 1977 policy were removed, he said.
Prabhu said Hanumanthiah Committee, constituted to study the working of the fertiliser industry, had suggested natural gas as the uniform raw material for nation's fertiliser industry, so that the production cost would be uniform. At present, the cost varied as the fertiliser units used either naphtha or natural gas, he said.
Prabhu said Indian companies should set up natural gas-based fertiliser plants as joint venture in the countries, where gas was available in plenty. The country could import fertiliser from these countries, he said.
Referring to the industry's demand for stopping the fertiliser imports, he said this could not be accepted as the country was a signatory to WTO agreement. The plants in the country should modernise to be competitive globally, he said.
Prabhu said his ministry would soon come out a white paper on the sick fertiliser units. The paper would suggest ways for revival of the sick units and reopening of the closed ones, he said.
There was a need for proper mix of organic and chemical fertilisers so that the food production could be optimised, he said.
Praising the fertiliser industry for its achievement, he said but for the increase in the production, the country would not have achieved food security.
He said the government would consult the industry for fixing the import duty of urea so that the imported urea and indigenously manufactured were sold at the same rate.
