India to Launch Fertiliser Subsidy Scheme
The Indian Government is expected to implement a new fertiliser subsidy policy that could hurt Indian farmers, the director of fertiliser maker IFFCO has announced.
Dr US Awasthi said the proposed policy would cover only a portion of the costs, which will burden farmers if prices of potash- and phosphate-based fertilisers shoot up.
"In my mind, the potash suppliers have to very seriously think of supplying to India within a $350–360 range, if they think of selling at a higher price, then they may be in for a surprise, as our farmers may not be able to pay," Awasthi told Reuters.
Under the existing regime, the Indian Government compensates fertiliser producers, who sell at below market prices, for the deficit through cash subsidies and bonds.