Expect urea to be decanalised: Satish Chander

A Committee of Secretaries meet on February 7 to discuss the report on urea decontrol. The committee is expected to prepare this report within a month on urea the report will be then sent to the group of ministers for approval.

 

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. 

 

Satish Chander, Director General, Fertilizer Association of India said there has been no investment in Urea in the past 12 years. He expects urea to be decanalised. 

 

Chander hopes that a major correction in the policy would provide some freedom to companies. He also said heexpects all subsidy payments to be in cash.

 

Below is a verbatim transcript of Satish Chander's interview with CNBC-TV18's Mitali Mukherjee and Udayan Mukherjee. Also watch accompanying videos.

 

Q: What is your expectation of what the committee of secretaries will have to say and what changes are they recommending?

A: Urea accounts for more than 50% of the total consumption of fertilizers in the country. The government is on path of reforms for this sector. The intent of the government was clearly announced in the budget of 2009. The policy implemented in 2010 for P& K fertilizers is a huge success. The country has been able to save a lot of money on the subsidy. Availability of fertilizers has been ensured in time to the farmers. The farmer