NEW DELHI: Fertiliser subsidy arrears at the end of 2013-14 are estimated at Rs 30,000 crore, the same as the previous year’s level.
The outstanding at the end of 2012-13 was about Rs 30,000 crore, including Rs 22,000 crore carried over from 2011-12.
“About Rs 30,000 crore arrears of fertiliser subsidy till financial year 2013-14 will be carried over to the current fiscal,” a source said.
Sources said subsidy arrears at the end of 2013-14 were at the previous year’s level mainly due to a 12 per cent decline in urea imports to 7.08 million tonnes (MT) in 2013-14. In 2012-13, the country had imported 8.04 MT of the soil nutrient.
As the fertiliser industry was facing a cash crunch in 2013-14, the government had made available special banking arrangements ( SBA)– Rs 5,500 crore twice and Rs 9,000 crore.
After making payments till July in the last fiscal, the government exhausted urea subsidy allocated for the entire fiscal. The subsidy allotment for phosphatic and potassic (P&K) fertilisers was utilised by December-end.
Sources said the Fertiliser Ministry had hardly any money left with itself to pay subsidy bills for the third and fourth quarters of the 2013-14. —PTI