India is likely to earmark nearly $19 billion in the federal budget to compensate fertilizer companies for selling their products to farmers at lower than market prices, according to people with knowledge of the matter.
The finance ministry has penciled in 1.4 trillion rupees ($18.8 billion) as fertilizer subsidy in the budget due Feb. 1, up from 1.3 trillion rupees in the year ending March 31, due to higher raw material costs, the people said, asking not to be identified as the information is not public. Discussions are still going on and a final decision is yet to be taken.
Source:
Bloomberg
