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The government of India has plans to change the method of subsidizing fertiliser prices. This will be done by shifting to a "nutrient based subsidy regime" from the current "product pricing regime". This was put forward by Finance Minister Pranab Mukherjee announced while presenting the Budget 2009-10 in parliament on Monday.
Till now, the fertilizer manufacturers have been subsidizing so that they sell to farmers at low prices. Mukherjee said that the new move will lead to "unshackling of the fertiliser manufacturing sector", and he expected "fresh investments" as well as "direct transfer of subsidies to farmers".
