The federal government’s fertiliser subsidy bill is expected to drop 30-34 per cent to Rs 1.7-1.8 lakh crore this fiscal due to drop in global prices and low imports of urea, Union Minister Mansukh Mandaviya said on Wednesday.
Asked about any adverse impact on imports due to cargo disruption in Red sea by Yemini Houthis the minister asserted “there is no shortage of fertilisers in the country”.
Addressing a press conference, chemicals and fertilizers minister Mansukh Mandaviya said that the urea imports are estimated at 40-50 lakh tonnes this fiscal, fewer from around 75 lakh tonnes imported in the previous year, due to high domestic production and increased use of nano liquid urea.
“Ministry of External Affairs is doing necessary interventions and our Navy is doing protection to Indian cargo vessels,” Mandaviya told reporters.
According to exporters, freight rates have skyrocketed by up to 600 per cent due to the Red Sea crisis which would hurt the world trade.
The geopolitical crisis around the Bab-el-Mandeb Strait, a crucial shipping juncture linking the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants.
The minister also spoke about his new book ‘FERTILISING THE FUTURE: Bharat’s March Towards Fertiliser Self-Sufficiency’.
Mandaviya said there is sufficient stocks Of fertilisers in the country to meet the requirements of the kharif (summer sown) season.
At present, the country has stocks of 70 lakh tonnes of urea, 20 lakh tonnes of DAP, 10 lakh tonnes of MoP (Muriate of Potash), 40 lakh tonnes of NPK and 20 lakh tonnes of SSP (single super phosphate).
Mandaviya said that the government has taken several steps since 2014 to speed up domestic production of fertilisers and reduce import dependence.
He said four urea plants have already been revived and the fifth one would also start production soon.
The minister said the Centre is also promoting eco-friendly fertilisers line — nano liquid urea and nano liquid DAP. Besides, it has launched a scheme to incentivise states that curb use of chemical fertilisers.
India has entered into long-term supply agreements with global suppliers for assured imports of fertilisers and its raw materials at pre-determined prices, he added.
Asked about fertiliser subsidy, Mandaviya said the subsidy bill is estimated at around Rs 1.7-1.8 lakh crore.
“Subsidy is expected to be fewer this year because of drop in global prices. We have not increased retail prices to reduce subsidy,” he said.
When the global rates skyrocketed during last fiscal, he said, the government increased subsidy and kept the retail prices of urea, di ammonium phosphate (DAP) and other fertilisers to protect farmers interest.
By PTI
