Fertiliser Subsidy

Possible triggers? Abolition of extra free foodgrain distributed as part of PMGKAY, cooling of international fertiliser prices

Apple growers and other horticulturists in Himachal Pradesh said they were hopeful of getting special provisions in the Union Budget to boost trade of Himachali apples.The growers said they were also looking forward to Finance Minister Nirmala Sitaraman giving more clarity on import duty on apples procured from overseas to India or bringing the apples under a special category in World Trade Organisation (WTO).The farmers also demand subsidies in fertilisers and provision of MSP for apples on a par with Jammu and Kashmir."We are hopeful of special budgetary provisions for us. Inflation has hit everyone in the country, and the cost of production is going up. There is an urgent need for subsidy on fertilisers and pesticides for horticulture. We also are looking for more clarity from the finance ministry on imposition the 100% import duty on apples (from overseas), as imported apples, especially from China and Iran, hit our peak apple season, resulting in the prices of our produce going ..

Two policy tweaks to lower the govt's bill depend on weather, state of the global economy and the trajectory of the Russia-Ukraine war

Nano-fertilisers will reduce subsidy outgo

The government expects to budget around Rs 2.3 trillion for food subsidies in the coming fiscal year, compared with Rs 2.7 trillion for the current year to March 31

The lower fertilizer allocation will help with India's goal of cutting its budget deficit. Food and energy costs have jumped after Russia's invasion of Ukraine

Shares of Coromandel International, Deepak Fertilisers, GSFC, Madras Fertilisers, National Fertilisers, RCF, and Zuari Agro Chemicals have soared up to 196 per cent so far this calendar year (CY22)

The government's fertiliser subsidy will rise to Rs 2.3-2.5 lakh crore in this fiscal but the bill may fall by 25 per cent in the 2023-24 financial year with moderation in global prices, according to industry body FAI. Fertilisers Association of India (FAI) expressed concern that the fixed cost of urea has not been increased affecting the viability of urea plants. It also pointed out that the industry is running on a very thin margin, which is hampering new investments in this sector. The industry body said there is sufficient availability of fertilisers, including urea and DAP, for the ongoing rabi (winter-sown) season. "We estimate the fertiliser subsidy bill at Rs 2.3 lakh crore to Rs 2.5 lakh crore," FAI President K S Raju told reporters here late Monday. This has helped insulate the farmers from the impact of a steep increase in the cost of all fertilisers due to sharp rise in international prices of fertilisers and raw materials, he added. The fertiliser subsidy stood at Rs

Barring, Chambal Fertilizers & Chemicals, which has shed 19 per cent on YTD basis, most of the other fertilizers stock have logged gains so far in 2022. Deepak Fertilisers has zoomed 148 per cent.

The Union Cabinet on Wednesday approved the proposal of the department of fertilizers for per kilogram rates of nutrient-based subsidy (NBS) for various nutrients for rabi season 2022-23, starting from October 1, 2022, to March 3, 2023.These nutrients are nitrogen (N), phosphorus (P), potash (K) and sulphar (S) for phosphatic and potassic (P & K) fertilisers.An official release said that subsidy approved by Cabinet for the nutrient-based subsidy (NBS) Rabi-2022 will be Rs 51,875 crore including support for indigenous fertiliser (SSP) through freight subsidy.It said this would enable the smooth availability of all P & K fertilisers to the farmers during Rabi 2022-23 at the subsidised prices of fertilisers and support the agriculture sector. The volatility in the international prices of fertilisers and raw materials has been primarily absorbed by the government, the release said.It said the government is making available fertilisers - urea and 25 grades for P & K ...

The industry has on several occasions told the government the price of ethanol produced from sugar juice or syrup should be based on returns on equity

The financial condition of state-run fertiliser companies is completely dependent on subsidies and prices, which are majorly dictated by the government in India

Industry insiders expect 10-15% increase in pooled gas prices in fertiliser sector

The finance ministry has hinted that India's fertiliser subsidy bill for 2022-23 (FY23) could rise to around Rs 2.5 trillion against Budget Estimates (BE) of Rs 1.05 trillion

The risk of a breach of the government's fiscal deficit target could play a spoilsport for the sector as it could prompt the Centre to cut back on subsidy support, analysts believe.

In an internal note, the FinMin's Dept of Expenditure has warned that extension of the free food scheme beyond September or any more tax cuts will have consequences for the Centre's fiscal situation

If the burden does hit Rs 2.5 trillion, that would mean extra spending of around Rs 35,000 crore

Finance Minister Sitharaman had said on May 21 that fertiliser subsidy would require an additional outlay of Rs 1.10 trillion over and above the budgeted amount, taking the outlay to Rs 2.15 trillion

Hike is valid till September 30. Consequently, per tonne increase in subsidy in DAP and its products has also been lower than different grades of NPKS

The government will not increase retail prices of urea and also provide adequate subsidies to ensure that the maximum retail prices of non-urea fertilisers remain at the present level, sources said