NEW DELHI: India has revised the gas procurement policy for fertiliser companies, allowing them to buy about a fifth of their monthly needs through the domestic spot market to help the government cut its subsidy bill, two government officials said.
The government provides financial support for domestic fertiliser sales at rates below the market to insulate farmers from high prices and to contain inflation.
The government expects to cut its fertiliser subsidy bill by up to Rs 24,000 crore if the fifth of companies’ supplies is bought through bilateral contracts or gas exchange, said one of the government officials, who declined to be identified.
