Centre tells fertiliser makers not to hike prices

The Centre on Friday directed companies of fertilisers to withhold any proposed hike in costs for vitamins and minerals, including advanced fertilisers. It also held the nutrient-primarily based subsidy (NBS) plan unchanged for potassic and phosphatic fertilisers for 2021-22, till further more orders.

Mansukh Mandaviya, Union Minister of State for Chemical and Fertilisers, announced the Centre’s selection stating that the organizations have been asked to cost aged rates for decontrolled fertilisers.

“A substantial-amount assembly was convened to assess the scenario arising following fertiliser cost hike and availability difficulties cropped up in the region. The Centre has directed fertiliser companies not to hike fertilizer costs,” Mandaviya explained in a assertion.

Mandavia further more mentioned that the organizations have agreed to the government’s directive and that the farmers will carry on to get the advanced fertilisers, including DAP/MOP/NPK, at the aged rates.

Fertiliser makers, including the major participant Indian Farmers Fertilisers Cooperative Ltd (IFFCO), on Thursday announced a steep cost hike for essential agri inputs di-ammonium phosphate (DAP) and other phosphatic fertilisers citing better costs raw supplies in the intercontinental marketplaces. Prices of potash, DAP, phosphoric acid between some others have seen a significant boost in the previous number of months, forcing the fertiliser makers to hike the costs of the de-managed vitamins and minerals.

IFFCO experienced clarified that it will sell eleven.26 lakh tonnes of advanced fertilisers with aged rates to the farmers.

Sources in the fertiliser business explained the governing administration has been certain that all aged stocks will be marketed at the aged cost, but felt that the roll-about of the subsidy rates underneath NBS from past yr would exert tension on end-products costs as raw materials price have amplified amidst a weakened rupee. For past monetary yr, the governing administration experienced fastened the subsidy charge for nitrogen (N) at ₹18.seventy eight for each kg, phosphate (P) at ₹14.88 for each kg, potash (K) at ₹10.eleven for each kg and sulphur (S) at ₹2.37 for each kg.

Sources also felt that the steep boost of forty-fifty for each cent in retail costs could damage consumption. In general fertiliser volumes experienced registered 8 for each cent growth through 2020-21 at about sixty six.four million tonnes (mt) from sixty one.5 mt the previous yr. Urea volumes were being up five for each cent at 35 mt through 2020-21 in opposition to 33.5 mt the previous yr. DAP volumes were being up two for each cent through the fiscal, while NPKS noticed a growth of 17 for each cent and muriate of potash (MoP) was up 19 for each cent.