The fertilizer industry expects Rs 50,000 crore in cash for FY12 by way of subsidies. It also expects further cushioning for FY11 subsidy. The sector has also sought removal of import and export restrictions.
In an exclusive interview with CNBC-TV18, Shankar Narayan, CMD, FACT expects a 17-18% reduction on subsidies. He added that unless the government reduced its subsidy, he would be forced to increase prices. Below is a verbatim transcript of the interview. Also watch the accompanying video. Q: Just as an industry view and as a veteran voice in the market, what is your expectation of what might be tabled in this meeting which is scheduled to be held and is it likely that a report might come out or is it going to be a discussion, any indication? A: Right now I do not have a clear indication but the ministry is actively considering various aspects of this urea pricing as well as import other thing. So there should be a definite recommendation; that is my feeling on that but we have not been able to give it a clear area whatever the direction it will be discussed, it is being done at secretary level. It will take some decision on this issue because end of the year is coming because next year some policy has to be in place. Q: What is your expectation in terms of possibly what could be on the agenda, do you think that NPS for urea could definitely be one of the things that they will table and/or the removal of an extension of NPS3? A: I donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
