Ajit Singh seeks fertiliser price rollback

NEW DELHI: Farm minister Ajit Singh — important ally to the BJP in UP — has shot off a note to the Cabinet on the rollback of fertiliser price to pre-Budget levels and a PDS foodgrain price cut. The Cabinet is expected to take a decision “shortly.�
The note spells out an approximately Rs 3,500 crore package including measures such as a rollback to pre-Budget prices for fertilisers, waiver of interest on farmer’s loans and a reduction in PDS foodgrain prices for below poverty consumers.
With half a year gone already, it is roughly estimated that a fertiliser price rollback will create an additional subsidy demand worth Rs 500 crore. Should any of these demands be accepted by the Cabinet — it has already agreed to the Rs 20 per kg one time drought bonus for common and grade A paddy varieties as suggested by the CACP under pressure from Mr Singh — it will be another achievement for Singh.
On Wednesday, the GoM decided to do away in a phased manner with controls on the free sale of urea. Half of the urea produced by each fertiliser unit could be directly sold to farmers by next year.
The year after, the total 100% urea produced could be sold by the industry in the market, but again, at controlled prices.