Krishi VaartaOutlook Agriculture
Government may Cut Import Duty of Fertiliser Raw Materials in Budget!
The central government may cut the import duty of raw materials to increase domestic production of fertilisers in the General Budget 2020-21 presented on February 1. According to sources, the reduction in import duty on raw materials such as rock phosphate and sulphur used in di ammonium phosphate (DAP) will boost domestic production and will also reduce the import bill. Currently, there is a 5% import duty on them.
At present, about 95% of the total requirement of the country is imported raw material or finished fertiliser used in DAP, while about 30% of the total requirement of urea is imported. The Commerce Ministry has suggested the Finance Ministry to rationalize basic customs duty on about 300 commodities to boost domestic production and reduce import bills.
According to sources in the Ministry of Agriculture, the central government may also announce to send the amount of fertiliser subsidy to farmers' accounts through DBT in the budget. Preparations for this are almost complete.
Source: Outlook Agriculture, 27 January 2020
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