The Economic Survey of 1991-92 noted that fertilizer prices remained almost unchanged from July 1981 to July 1991. The Union Budget of July 1991 raised the issue prices of fertilizers by 40% on average. But from August that year, this was reduced to 30%, and small and marginal farmers were exempted from the price increase. The Economic Survey further noted that even with this 30% increase, fertilizer subsidy remained substantial and needed to be reduced further. Due to opposition to increase fertilizer prices, the increase in the price of urea was rolled back to 17% a year later over the pre-reform price. (Read More)
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