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Fertilizer subsidy bill set to touch record ₹1.65 trillion in FY23: Report -Gireesh Chandra Prasad

-Livemint.com

A revision in nutrient-based subsidy rates is crucial to sustain credit profiles of fertiliser makers, Crisil said

New Delhi: The central government’s fertilizer subsidy outgo could touch an all-time high of 1.65 trillion in FY23, against the budgeted 1.05 trillion, due to an unprecedented rise in the cost of raw materials and prices of fertilizers globally, rating agency Crisil said on Thursday.

A revision in nutrient-based subsidy rates is crucial to sustain credit profiles of fertilizer makers, the agency said in an analysis.

To be sure, the government has been proactive in addressing the situation, Crisil said. In FY22, the government had originally allocated 79,530 crore as fertilizer subsidy but eventually raised it to 1.4 trillion, showed budget documents.

Crisil said another intervention may be needed in this fiscal. Not doing so would take the subsidy arrears to an all-time high of over 75,000 crore by end of this fiscal, it said.

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