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This is an archive article published on March 8, 2003

Rollback of urea price hike likely

The government may roll back the proposed increase in urea price by at least Rs 6 per 50 kg bag due to mounting political pressure from the ...

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The government may roll back the proposed increase in urea price by at least Rs 6 per 50 kg bag due to mounting political pressure from the ruling Bharatiya Janata Party (BJP) and National Democratic Alliance (NDA) partners. Finance Minister Jaswant Singh, in his Budget speech, proposed to increase urea price by Rs 12 per 50 kg bag.

The exercise to review price increase is part of the government strategy to please the farming community in view of pending polls in several States. Singh, however, has been resisting price revision because of fiscal considerations.

According to fertilizers ministry sources, PM Vajpayee has discussed the issue threadbare with the FM on Thursday and asked him to soften his ‘nothing doing’ stance in view of the adverse propaganda and ensuing elections in Madhya Pradesh, Rajasthan and Delhi. Singh has held that the focus of criticism on urea price was misplaced. According to FM, the real issue is who should be getting the benefit of subsidy — the farmers or the fertiliser industry. Sources said Vajpayee is likely to call another meeting next week to take a final view on the issue of fertiliser price hike. The decision is likely to be announced after Parliament goes into recess. It is learnt that Deputy PM Advani and party president M. Venkaiah Naidu have also conveyed their concern to Vajpayee. They pleaded that the party should not convey an anti-farmer image. Meanwhile, Union Minister of Chemicals and Fertilizers S.S. Dhindsa also met Vajpayee on Friday and pleaded that the increase in fertilizers prices should be withdrawn as it will adversely affect the condition of farmers.

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