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Indian fertilizer subsidy may cause price rises

4:40 PM MST | March 11, 2013

India will need to allow fertilizer producers to raise urea prices to farmers, or provide additional funding, following a decision to cut the country’s fertilizer subsidy in the 2013–14 budget, industry sources say. Finance minister P. Chidambaram, in his budget for the fiscal year starting 1 April, announced recently, estimates 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. Indian fertilizer companies say that the announced subsidy is well below what...

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