DECISION ON UREA TO HIKE FARM SUBSIDY
Article Abstract:
The Government of India's decision to withdraw the Re1 per kg rise in the urea price is expected to raise its subsidy on fertilisers. The government of India will now have to spend an additional amount of Rs2000 crore on di-ammonium phosphate (DAP) import. The government will have to incur the additional cost as the imports have become costly after the rupee fell below the 41 mark against the US dollar. The price per tonne is expected to increase by Rs1,300 which means that the government of India will have to set aside an additional Rs2,000 crore, against the current allocation of Rs2,600 crore. During 1997-98, India had imported over 1.4 million tonnes of DAP to cater to the kharif and rabi demand while in 1998-99, India imported just 8.2 lakh tonnes and a shortage is expected during the year. Currently, the farm gate price of urea is Rs3,660 per tonne while DAP costs Rs8,300 and MOP Rs3,700. (ag)
Comment:
India: Government's decision to withdraw Re1 per kg rise in urea price is expected to raise its subsidy on fertilizers
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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GOVT MANAGES TO SLASH SUGAR SUBSIDY BILL
Article Abstract:
The government of India has reduced the sugar subsidy bill. It has made the Indian sugar consumers pay an additional Rs435 crore for buying sugar while offering just Rs103 crore to the local sugar industry. The government had raised the sugar prices by 90 paise to Rs11.40 per kg from Rs10.50 per kg on October 1, 1997. This resulted in a Rs900 per tonne growth in earnings. While the government earned Rs435 crore on a public distribution sales of 47 lakh tonnes, it has offered just 22 paise per kg to the mills, incurring an additional cost of just Rs680 per tonne. (ag)
Comment:
India: Govt reduces sugar subsidy bill, making the Indian sugar consumers pay an additional Rs435 crore for buying sugar
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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