| Date: |
26-03-2012 |
| Subject: |
Govt may allow cos to lift imported fertilisers from port |
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New Delhi: The government is likely to allow fertiliser firms to lift from April 1 around 10 lakh tonnes of imported soil nutrients, especially potash and DAP, lying at ports, as the demand is seen to rise from next month.
Last month, the Fertiliser Ministry had issued an order stopping fertiliser companies from lifting fertilisers that were imported in February and March.
"The Ministry has decided to permit fertiliser companies to lift imported stock of February and March lying at ports from April 1. An official order in this regard will soon be issued," a source said.
About 10 lakh tonnes of fertiliser imported during the February and March period is lying at ports.
The decision has been taken in view of expected rise in fertiliser demand from April onwards ahead of kharif (summer) sowing, the source said.
The Ministry had banned movement of fertilisers to curb some companies from taking any undue advantage of high subsidy in the current fiscal.
With the government deciding to lower subsidy on these soil nutrients for the next fiscal, sources pointed out that fertiliser firms had intended to claim subsidy on the 10 lakh tonnes of imported quantity in the current year itself even as there was a poor demand of fertiliser.
The Ministry disburses subsidy to fertiliser companies on actual-sale-receipt basis. Major importers are IFFCO, PPL, Chambal Fertilisers and Indian Potash Ltd.
The government is giving a subsidy of Rs 19,763 per tone on DAP and Rs 16,054 a tonne on MoP in this fiscal. However, it has decided to slash the subsidy on DAP and MoP to Rs 15,000 per tonne each in view of bearish global prices.
The subsidy bill on non-urea fertilisers is expected to increase to about Rs 70,500 crore this fiscal from about Rs 61,100 crore a year earlier.
After the decontrol of non-urea fertilisers, DAP and MoP prices have more than doubled to Rs 20,000 a tonne and Rs 12,000 a tonne, respectively.
India imports almost half of its requirement of DAP and almost entire requirement of MoP.
Source : zeenews.india.com
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