Press briefing of Cabinet Decision taken on 2010-12-29

Expansion of Fertilizer Subsidy Programme and Promote Usage of Organic Fertilizer

- the Government Supplies Chemical Fertilizers to farmers at a subsidized rate of Rs.350/- per 50 Kg. for paddy cultivation. This is only 10% of the value of fertilizer and the balance 90% is borne by the Government. The annual contribution by the Government for this programme is Rs.30,000 million. It is proposed to expand the fertilizer subsidy programme for other crops by encouraging application of organic fertilizer to reduce chemical fertilizer usage on paddy. By promoting the use of organic fertilizer, usage of chemical fertilizer will be reduced and the savings thus earned could be utilized for organic fertilizer production activities and promotion programmes. Cabinet decided that an Officials' Committee consisting of the Secretary, Ministry of Agrarian Services and Wildlife: Secretary, Ministry of Agriculture and a nominee from the Ministry of Finance and Planning should further study this matter and submit a Report to implement the proposals.