Finance Ministry yet to receive any proposal to hike fertiliser subsidies: Minister
Purchase committee approved four proposals worth Tk492 crore on Wednesday
The finance ministry is yet to receive any proposal from the agriculture ministry for increasing fertiliser subsidies, said Finance Minister AHM Mustafa Kamal.
He said this just two days after Agriculture Minister Mohammad Abdur Razzak's briefing on the global fertiliser market situation and mounting government subsidies.
According to the agriculture minister, the import price of fertilisers more than doubled relative to the previous year, thus raising subsidy requirements. The ministry will need Tk28,000 crore to deliver fertiliser to farmers at subsidised rates, while the current fiscal year's budget has set aside only Tk9,500 crore.
Keep updated, follow The Business Standard's Google news channel
"However, we are not informed about the matter," Mustafa Kamal said, talking to reporters on an online platform after a meeting of the Cabinet Committee on Purchase, on Wednesday.
"The finance ministry has to manage required financial support in various ways. If there is a deficiency [in fertiliser subsidies], we have to take measures to meet that," he added.
The finance ministry, however, did not clarify what measures they would take.
Agriculture Minister Razzak, in Monday's event, also said that they were under pressure to reduce fertiliser subsidies, meaning a hike in fertiliser prices.
Although he said the price of fertilisers would not be increased right now, he expressed concern about the mounting subsidies. "If we continue to provide the subsidies, it will hamper government development activities," he added.
On the fertiliser price hike, Finance Minister Mustafa Kamal said he was not aware the agriculture minister had hinted about a fertiliser price hike.
In replying to a journalist, he said he was unaware of how much money would be needed to continue with subsidised fertiliser. "We have to wait for the analysis," he added.
The purchase committee approved four proposals worth Tk492 crore on the day, according to the minister. Of that, the government will provide only Tk79 crore and the rest will come from local banks and the World Bank.
