Govt keeping vigil on prices of decontrolled fertilisers

Written by fe Bureau | New Delhi | Updated: Jul 31 2013, 06:30am hrs
With the cost of non-urea fertilisers shooting up globally, the fertiliser ministry is keeping a strict vigil on prices of fertilisers that were de-controlled in April 2010 to check any abnormal increases. Fertiliser minister Srikant Jena said the government wants prices of de-controlled fertilisers to remain at reasonable levels to safegaurd farmers interests. We will keep a vigil on prices," Jena told FE from Orissa.

The minister said that although no proposal for capping prices of decontrolled fertilisers such as DAP and MoP has come up, the government wants prices to remain reasonable. As per certain reports, the fertiliser department has prepared a note suggesting that MRPs of DAP and MoP be based on the reference levels the department has determined.

After prices of potash and phosphatic fertilisers were decontrolled in 2010-11, prices have skyrocketed. Based on the nutrient-based subsidy scheme (NBS), the industry was given a free hand to fix prices of these fertilisers but it had to inform the government of any price increases.s

For the current financial year, the government has earmarked around R66,000 crore as fertiliser subsidy.