Proposal to Reduce Subsidy on Fertilizers

The subsidy rates of Phosphatic and Potassic (P&K) fertilizers under Nutrient Based Subsidy Policy being implementedw.e.f. 1.4.2010, are fixed on annual basis taking into consideration all factors including international and domestic prices of these fertilizers, inventory level and exchange rate.  Since the present international prices of P&K fertilizers are comparatively less as compared to those in last year, the subsidy rates for the year 2013-14 will be fixed accordingly.

The consumption of Potash has nearly been the same in the years 2009-10 and 2010-11.  However, the consumption went down due to non-availability of Potash during Kharif Season of 2011-12 as Potash could not be imported because of high international prices.

A list of chemical fertilizers mainly produced in the country is given below.

S. No.  Categories

1.  Urea

2.  A/S (Ammonium Sulphate)

3. DAP (Di Ammonium Phosphate)

4. SSP (Single Super Phosphate)

5. NPK Complex Grade Fertilizers:-

i.  20:20:0

ii. 15:15:15

iii. 20.8 : 20.8

iv. 17:17:17

v.  10:26:26

vi.  12:32:16

vii. 14:35:14

viii. 19:19:19

ix. 28:28

x.  24:24:0

xi. 16:20.0

xii. 14:28:14

Besides above many other chemical fertilizers and organic fertilizers are also produced in the country.

In order to augment Urea production in the country the Government has announced the New Investment Policy to encourage new investments in the urea sector.  In respect of P&K fertilizers, the country is nearly fully dependent on imports either in the form of finished products or its raw materials.  In order to enhance production of P&K fertilizers, the Government is encouraging fertilizer companies to enter into Joint Venture for acquiring fertilizer assets abroad and also to enter into long term off take agreements on preferential prices for supply of raw materials.


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