At present, Government of India is implementing New Pricing Scheme-III for Urea and Nutrient Based Subsidy (NBS) Policy for 22 grades of decontrolled Phosphatic & Potassic (P&K) fertilizers namely DAP, MAP, TSP, DAP Lite, MOP, SSP, Ammonium Sulphate (caprolactum grade produced by FACT and GSFC) and 15 grades of complex fertilizers to make fertilizers is fixed annually on the basis of its nutrients content (i.e. Nitrogen, Phosphate, Potash and Sulphur). NBS is fixed taking into consideration the affordability of the farmers and prices of fertilizers in the international market. Under this scheme, Maximum Retail Price (MRP) of fertilizers has been left open and manufacturers/marketers are allowed to fix the MRP at reasonable level. It is seen that as per the present MRP of P&K fertilizers, farmers are paying only 27% to 58% of the delivered cost of these fertilizers. Urea is provided to farmers at subsidized Maximum Retail Price of Rs. 5310/- Per MT.
The amount of subsidy given to fertilizers companies during the last three years for chemical fertilizers viz. Urea and 22 grades of P&K fertilizers are as under:
Fig. in Rs. Crore
Period | Urea | P&K Fertilizers | Total |
2008-09 | 33939.92 | 65554.79 | 99494.71 |
2009-10 | 24580.23 | 39452.06 | 64032.29 |
2010-11 | 24336.68 | 41500.00 | 65836.68 |
This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.
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