Fertiliser subsidy to cross Budget estimates

India's fertiliser subsidy burden is likely to overshoot the budgetary estimate by at least Rs 40,000 crore ($7.4 billion) to Rs1 lakh crore in the financial year ending March 31, top officials of the Fertiliser Association of India said on Friday.

Satish Chander, director general of Fertiliser Association of India (FAI), told reporters here that the budgetary estimate for the fertiliser subsidy was not realistic as the actual burden is likely to be much more.

In the union budget for 2012-13, a provision of Rs 61,000 crore was made for fertiliser subsidy.  “The actual burden is likely to overshoot by at least Rs 40,000 crore,” said Chander.

He added that the fertiliser firms have not been paid the subsidy part for the last eight months. 

Only 40 per cent of the cost is recovered from  farmers, while the rest comes from government kitty.