Fertiliser use may be low, sops to go up in 04-05

New Delhi, Feb 25 | Updated: Feb 26 2005, 05:30am hrs
The fertiliser consumption during 2004-05 is likely to be low due to deficient rainfall though the fertiliser subsidy will touch Rs 12,662 crore during the period, says the Economic Survey.

The domestic production of fertilisers such as nitrogenous and phosphatic during 2004-05 is estimated to be higher than that during 2003-04.

However, a great deal of variability was observed in the fertiliser consumption during 2003-04 amongst states with the per hectare consumption being high in Punjab, Haryana and Andhra Pradesh and low in Rajasthan, Orissa, Madhya Pradesh and North-Eastern states.

The survey said due to good monsoon in 2003, fertiliser consumption bounced back during 2003-04, but still fell short of the 18.1 million tonne consumed during 1999-2000.

As a result of deficient rainfalls in some parts of the country during the current fiscal, fertiliser consumption is likely to be low, predicted the survey.

The subsidy on urea is estimated at Rs 8,616 crore, on decontrolled phosphatic and potassic the subsidy is estimated at Rs 4,046 crore during 2004-05.

The survey noted that there has been no increase in selling price of fertilisers since February 2002 and a proposal to marginally increase the selling price announced in 2003 was withdrawn. The fertiliser consumption during 2004-05 came down due to deficient monsoon, the survey said.