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India's cut in fertilizer subsidy may lead to higher urea prices

8:10 AM MST | March 1, 2013 | Natasha Alperowicz

India will need to allow fertilizer producers to raise urea prices to farmers or provide additional funding, following a decision to cut fertilizer subsidy in the 2013–14 budget, industry sources say. In his budget for the year starting 1 April, finance minister P. Chidambaram on Thursday estimated the fertilizer subsidy at 659.72 billion Indian rupees ($12.1 billion), broadly in line with a revised estimate of Rs659.74 billion for the current year.   But Indian fertilizer companies say that this year’s subsidy is well below what they need to...

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