The MRP of 22 grades of phosphatic, potassic and complex fertilisers are slashed following a government's directive to manufacturers that they should pass on the benefit of falling global prices of these fertilisers to farmers.
In a statement, Indian Farmers Fertiliser Cooperative (Iffco) said the retail price of Di-ammonium Phosphate (DAP) has been reduced by R75 to R1,125 per bag, while NPK-I and NPK-II rates are brought down by R60 to R1,045 and R1,050 per bag, respectively.
In case of NP grade, the retail prices has been reduced by R50 to R900 per bag, it said.
The new rates would be applicable on stocks puchased in the last month and lying with cooperative members.
"The reduction in rate is very timely because at present farmers have not purchased fertiliser for kharif crops. This is the time for sowing of many crops like cane and mentha crops," Iffco managing director US Awashti said.
Farmers have started preparation of farm fields for kharif sowing, which will begin with the onset of south-west monsoon from June.
Awashti said fertilisers must be made available to farmers in advance as it takes at least a month for the company to ensure nutrients reach retail outlets and consumer points because of transport issues.
While announcing subsidy rates for phosphatic and potassic fertilisers for this fiscal, finance minister P Chidambaram had said on Wednesday the government "expects that MRP will now be lower by R1,500 per tonne for DAP and by R1,000 for MoP."
The fertiliser ministry will put in place a mechanism to ensure lowered MRP is fixed by manufacturers and benefit of reduction in global price is passed on to farmers, he had said.