Centre Revises Gas Procurement Policy For Fertiliser Firms To Cut Costs: Report
NDTV
The government provides financial support for domestic fertiliser sales at rates below the market to insulate farmers from high prices and to contain inflation.
India has revised the gas procurement policy for fertiliser companies, allowing them to buy about a fifth of their monthly needs through the domestic spot market to help the government cut its subsidy bill, two government officials said.
The government provides financial support for domestic fertiliser sales at rates below the market to insulate farmers from high prices and to contain inflation.
The government expects to cut its fertiliser subsidy bill by up to 240 billion rupees if the fifth of companies' supplies is bought through bilateral contracts or gas exchange, said one of the government officials, who declined to be identified.
India, which imports up to 40% of the 50 million tonnes of fertiliser it needs annually, has been hit hard by rising prices after Russia's invasion of Ukraine disrupted supplies. Russia is a major fertiliser producer.
