| Date: |
28-11-2011 |
| Subject: |
Indian Fertiliser Companies will absorb Rising Input Costs |
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New Delhi, Nov 27 (PTI) Indian fertiliser companies have said they will absorb the rising input costs of the crop nutrients despite rise in expenditure due to costly imports on account of the rupee weakening against US Dollar.
The fertiliser companies have also decided not to approach the government for additional subsidies and would re-negotiate with global fertiliser suppliers for reduction in prices.
"The Indian fertiliser industry has decided not to increase the maximum retail price (MRP) of fertilisers to the farmers for the present," Fertiliser Association of India (FAI) said in a statement.
The industry will also not ask the government for any additional subsidy and will absorb the additional cost, it added.
FAI said the depreciation of the rupee against the US Dollar is adding to its input costs.
"Weakening of Indian rupee by 10 paise increases the cost of DAP import by Rs 75 per tonne," it pointed out.
The rupee had weakened by 19 paise to close at 52.25/26 against the dollar on Friday. So far, it has depreciated by 18 per cent against dollar in 2011 and had touched a historic low of 52.73 on November 22.
According to market analysts, the move by fertiliser companies will benefit the farmers who are already paying a high amount for key fertilisers-- DAP and MoP.
The maximum retail price (MRP) of di-ammonium phosphate (DAP) has risen by 83 per cent to Rs 18,200 per tonne in October 2011 from Rs 9,920 per tonne in the year-ago period.
Similarly, in the case of Muriate of potash (MoP), prices rose more than two-fold to Rs 11,300 per tonne in October, 2011, compared to Rs 4,440 per tonne in the same period of the previous year.
Earlier, Indian Farmers Fertiliser Co-operative (IFFCO) had said that it will not raise fertiliser prices till March 2012 as its suppliers have agreed to reduce prices of DAP and complex fertilisers by 5 per cent.
IFFCO is contracting DAP at USD 677 per tonne and complex fertilisers at USD 617 per tonne, it had said.
India imports 90 per cent of its DAP demand and the entire requirement of MoP.
The country is estimated to have imported 5.6 million tonnes of urea, 3.81 million tonnes of DAP, 2.6 million tonnes of MoP and 2.17 million tonnes of complex fertilisers during the 2011-12 Rabi (winter) season.
Source : news.in.msn.com
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