FERTILISER SUBSIDY
Production Linked Incentive scheme for drones to kickstart industry, not permanent subsidy: Piyush Goyal
Goyal noted that technological progress in the drone industry will help farmers in getting higher quality crops and will also help in increasing the yield of crops,
Budget wishlist from agriculture & MSMEs stakeholders: Sops, infra push, easy loans and PLI schemes
Stakeholders from the agricultural sector and MSMEs provided key suggestions to Finance Minister Nirmala Sitharaman during pre-budget consultations. Suggestions included rationalizing fertilizer subsidies, boosting agricultural infrastructure investment, and implementing employee-centric production-linked incentive schemes.
Budget expectation of farm sector: Spotlight on agri research, fertiliser subsidy, climate fight in meeting with FM
Budget 2024 expectations: Experts at the meeting advocated for the consolidation of all agriculture-related subsidies for transfer through Direct Benefit Transfer (DBT) and proposed a hike in the retail price of urea, unchanged since 2018. They also emphasized promoting bio-fertilisers and foliar fertilisers through subsidies.
Credit profile of fertiliser companies to remain comfortable in FY25: Ind-Ra
Demand in the fertiliser sector remained robust in FY24, led by higher availability of funds with farmers due to various policy measures, and the stable farm gate prices. Moreover, the sector over the past two-three years has seen supplementary budgetary allocations as and when the prices of key input materials were increased to enable raw material availability and economic viability with producers and importers.
Subsidy allocation likely to stay at Interim Budget mark of Rs 4.1 lakh crore
The Centre aims to reduce the fiscal deficit to 5.1% of GDP, with allocations for food and fertiliser subsidies slightly lower than previous estimates. Plans include reducing dependency on imports for better fertiliser subsidy management.
India, one of the largest importers of urea, plans to be self-sufficient by 2025. Is it feasible?
A closer look at India’s strategy to end urea imports by 2025 shows gaps that need to be filled before shutting the import tap.
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Fertiliser, agrochemical stocks rally as monsoon arrives early
Fertiliser and agrochemical companies like FACT, Nova Agritech, and Rallis India saw a boost in shares as the monsoons arrived early. Analysts expect increased demand for products due to favorable weather conditions, with specific bullish recommendations for Coromandel International and other companies.
Fiscal deficit may fall below revised estimate of 5.8%
The Indian government's fiscal deficit could be slightly lower than revised estimates of 5.8% of GDP due to robust revenues and lower subsidy outgo. Tax revenues could exceed the revised estimate by ₹27,000 crore. The fiscal deficit in absolute terms is pegged at ₹ 17.3 lakh crore. Direct tax receipts are expected to exceed revised estimates by about Rs 14,000 crore, while indirect revenues, including customs and excise duty, by Rs 13,000 crore.
Will finally all the hard work yield results in Modi 3.0? 7 fertilizer stocks with 4 having ‘buy’ reco and upside upside potential of up to 22%
Few months back when it was announced that the fertilizer subsidy bill was seen as lower than expected, the street reacted negatively. The assumption is that if the fertilizer subsidy is going to come down then it is bad for the sector. Now there is another way to look at it, a government which has been ensuring that agriculture gets the right amount of attention and doing the various policy pushes, then why is the overall projected subsidy bill down? Probably, it may be because the government is expecting that policy actions which it has taken over the years will yield results and some of the other non-financial efforts which it will take in the sector will help reduce the bill without having an adverse effect on any stakeholders. Now unlike other sectors like railways where putting more money or making few policy changes has helped the sector, fertilizer is a more complex sector and is bound to take more time for getting the house in order. But then who says that transition for good is painless.
India’s $48 bn input subsidy for power and agri raises hackles
WTO members, including the US and UK, have raised questions about India's $48 billion farm input subsidies for 2022-23, which have been attributed to inflation and rising fertilizer costs. India explained that these subsidies are mainly for power, irrigation, and fertilizers and that the information had been duly notified to the WTO. The US claimed that this amount is more than twice the value of all trade-distorting support notified by India in 2021-22.
Ready for re-rating in Modi 3.0? 7 fertilizer stocks with four having “buy” reco and upside potential of up to 47%
Sometimes, what might appear to be negative development might actually be a sign that the worst is behind the sector. Fertilizer as a sector, both in the business and valuation side has been under performer. The fact is that in the last nine, the government has been making changes in policies which brings this sector out of the clutches of high government subsidy and other age old issues plaguing the sector. Now unlike other sectors like railways where putting more money or making few policy changes has helped the sector, fertilizer is a more complex sector and is bound to take more time for getting the house in order. A balance has to be maintained so that while the operating matrix of the industry improves but at the same time, neither the supply should get disrupted, nor the prices of fertilizer should see a jump to the farmer. What needs to be watched is when companies show the impact of all that has been going on in the sector, sooner or a bit later. To be fair, everything has not been a smooth ride for these companies. But then who says that transition for good is painless.
Closing fake accounts in Govt schemes saved Rs 3.35 lakh cr
The government's efforts to eliminate fake beneficiaries from various schemes resulted in saving approximately ₹3.35 lakh crore between FY18 and FY24. The Department of Expenditure identified and canceled millions of fake ration cards, beneficiaries of the LPG subsidy scheme, names under the MGNREGS, and beneficiaries under the PM Kisan scheme. These savings, which amounted to ₹30,000 crore in FY24 alone, are expected to be even higher when considering the last decade. The government is working with state governments to use technology to further reduce leakages.
India to stop importing urea by 2025 end: Mansukh Mandaviya
Asked about achieving self-sufficiency in urea production, Mandaviya said the Modi government has adopted a two-pronged strategy to end dependency on urea imports.
Centre may save ₹45k cr on lower capex by states, subsidy payout
Central government plans to cut fiscal 2024 spending by ₹45,000 crore with savings from subsidy bill reductions, states' under-utilisation, and improved tax collections. Softening fertiliser prices and revised expenditure estimates also contribute to the savings.
Centre in talks with banks to stop fertiliser subsidy funding
The government is currently in talks with banks regarding the potential discontinuation of financing for fertiliser subsidy receivables. This initiative comes after the government's implementation of direct benefit transfer (DBT) to fertiliser companies, which is based on the actual sales of retailers to beneficiaries.
Cabinet clears Rs 24,420 cr subsidy for P&K fertilisers in Kharif season
The union Cabinet approved a subsidy of ₹24,420 crore for phosphatic and potassic fertilisers for the upcoming kharif season, while maintaining the rate for di-ammonium phosphate at ₹1,350 per bag of 50 kg. The Cabinet also approved three new fertiliser grades under the Nutrient-Based Subsidy scheme to reduce import dependence.
Cabinet announces Rs 24,420-crore subsidy on P&K fertilisers for Kharif Season 2024
The Cabinet on Thursday approved Nutrient Based Subsidy rates for Kharif Season 2024 (from 01.04.2024 to 30.09.2024) on Phosphatic and Potassic fertilizers and inclusion of three new fertilizer grades under NBS scheme.
Volume for complex fertilisers to grow 4-5% next fiscal: CRISIL
Domestic sales of complex fertilisers in India are expected to grow by 4-5% in fiscal year 2025, driven by a normal monsoon and stable retail prices, according to a report by CRISIL. The growth rate for these fertilizers was 7-8% in fiscal year 2024, but the operating profitability of fertiliser makers is expected to decline by 30-35% this fiscal year. The report predicts that profitability will rebound next fiscal year due to stable raw material prices and revised nutrient-based subsidy rates.
Sugar mills can sell potash derived from molasses to fertilizer companies, can claim subsidies
Sugar mills can sell Potash Derived from Molasses (PDM) to fertiliser companies, claim subsidy. PDM has 14.5% potash content. 10-12 LMT potash manufacturing in 3 years. PDM derived from molasses based distilleries. PDM provides additional revenue for sugar mills, ensures timely payment to farmers.
Govt provides nearly Rs 1.71 lakh cr as fertiliser subsidy till Jan in 2023-24
The government has allocated nearly Rs 1.71 lakh crore as fertilizer subsidies until January in the current fiscal year, aiming to ensure affordable prices and adequate availability of fertilizers for farmers. Minister of State for Chemicals and Fertilizers Bhagwanth Khuba stated in a written reply to Lok Sabha that the subsidy covers various fertilizers and follows the Nutrient Based Subsidy (NBS) policy since April 1, 2010, for Phosphatic and Potassic (P&K) Fertilizers.
Govt allocates Rs 1.64 lk cr towards fertiliser subsidy for FY25 in Budget, 13% lower YoY
The Finance Ministry has allocated Rs 1.64 lakh crore for fertiliser subsidy in the upcoming financial year, which is 13% lower than the revised estimate for FY24. The Union Budget for FY24 had allotted around Rs 1.75 lakh crore towards fertiliser subsidy. Fertiliser subsidies account for approximately one-ninth of India's total budget expenditure. The subsidy burden rose in the previous financial year due to skyrocketing global prices.
Budget 2024: India may allot Rs 4 lakh crore for next year's food, fertiliser subsidies
Interim Budget: India plans to allocate about 4 trillion rupees ($48 billion) for food and fertiliser subsidies in the next fiscal year. The Ministry of Consumer Affairs, Food and Public Distribution estimates the food subsidy bill to be 2.2 trillion rupees, a 10% increase from the current fiscal year. Additionally, the fertiliser subsidy for the next fiscal year is expected to be 1.75 trillion rupees. Prime Minister Narendra Modi is expected to win a third term in the upcoming elections. Maintaining the subsidies is crucial for managing India's fiscal deficit.
Govt issues guidelines to evaluate reasonableness of non-urea fertiliser prices
For importers of P&K fertilisers, including di-ammonium phosphate (DAP) and Muriate of Potash (MoP), the profit margin allowed is 8 per cent. It has permitted 10 per cent profit for manufacturers and 12 per cent for integrated manufacturers. Unreasonable profit earned by the company will have to be refunded, or else it will be recovered by the ministry or adjusted with the future subsidy payment, as per the guidelines.
Fertiliser subsidy bill likely to dip 30-34% to Rs 1.8 lakh crore
"Subsidy is expected to be lower this year because of fall in global prices. We have not increased retail prices to reduce subsidy," he said, adding that subsidy bill is estimated around ₹1.7-1.8 lakh crore.
Need for subsidy Or increase in MRP of DAP as global prices rise: FAI
The DAP at Rs 1,350 per bag of 50 kilograms, at present, however, the international prices are elevated to $ 595 per tonne from $ 440 per tonne in July this year.
Rise in global prices of DAP fertilisers affecting viability, may need higher subsidy or MRP: FAI
The Fertiliser Association of India (FAI) pointed out a recent rise in global Di-ammonium phosphate (DAP) prices, suggesting a need for increased government subsidies or retail prices if the elevated international rates persist. Presently, fertiliser companies are selling DAP at Rs 1,350 per 50-kilogram bag. FAI Chairman N Suresh Krishnan noted that global DAP prices rose from USD 440 per tonne in July to USD 595 per tonne.
Union Cabinet approves NPK fertiliser subsidy for Rabi season; inclusion of Jamrani Dam Multipurpose Project accepted
The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for NPK fertiliser for the Rabi season. The subsidy is expected to cost Rs 22,303 crore. The Cabinet also approved the inclusion of the Jamrani Dam Multipurpose Project under the Pradhan Mantri Krishi Sinchayee Yojana-Accelerated Irrigation Benefit Programme. The estimated cost of the project is Rs 2,584.10 crore.
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