CAG blames government for deliberately pushing costly fertiliser imports

The Comptroller and Auditor General has castigated the government's fertiliser subsidy policy for deliberately pushing costly imports, turning the focus away from indigenous production of the key farm input, reports Our Bureau from New Delhi.

During 2003-04 and 2008-09, when fertiliser consumption increased by 46%, food grain, oilseeds and sugarcane production rose a mere 16%, said the CAG's performance audit on fertiliser subsidy. The strong indictment of the policy comes on a day when a group of ministers finally approved inclusion of urea under the nutrient based subsidy scheme or NBS.

Rubbishing the ongoing New Pricing Scheme, or NPS-III, for urea, the audit report said changes in the subsidy regime have failed to incentivise an increase in domestic production.

Increased consumption is, therefore, met largely through imports, leaving the country dependent on imports, whose pricing is volatile. “Increased demand of urea was primarily met through imports. Further, the weighted average cost of production increased by 81% to 120% post-NPS,” the report said.