FM concerned over lack of consensus on fertiliser subsidy

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Finance Minister P Chidambaram appears bothered by the lack of political consensus on payment of fertiliser subsidy, estimated to cost the exchequer over Rs 40,000 crore this year, directly to farmers.

“The Finance Minister expressed his helplessness over the demand of direct fertiliser subsidy to farmers, stating that there is a lack of political consensus on the issue,” Consortium of Indian Farmers Associations Secretary General P Chengal Reddy told reporters after farm sector representatives met Chidambaram for pre-budget consultations.

The Finance Minister had, in the budget 2007-08, proposed to start payment of fertiliser subsidy directly to farmers.

“Finance Minister is quite concerned that productivity in agricultural sector has stagnated. Production of wheat and rice are not going up... so there is a concern that we need to increase the productivity and overall production,” said Ashok Gulati, Asian Director, International Food Policy Research Institute.

Gulati, who also attended the meeting, said that overall, discussions revolved around how to achieve growth in farm sector.