• UGI USER
  • Jan 31, 2024
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GOVERNMENT’S ACTION: PRICE CONTROL ON NON-UREA FERTILISERS

Why in the News?

  • The government has implemented price controls on non-urea fertilisers.
Source: IE

About Price Control on Non-urea Fertilisers:

  • This includes Di-ammonium phosphate (DAP), muriate of potash (MOP), and other nutrient-based subsidy-supported fertilisers.
  • Guidelines by the Department of Fertilisers (DoF) , Ministry of Chemicals & Fertilizers since April 1, 2023, set profit caps: 8% for importers, 10% for manufacturers, and 12% for integrated manufacturers.
  • Excess profits must be refunded, failing which interest is charged.
  • Companies self-assess profits annually, submitting audited data to the DoF.
  • Urea’s maximum retail price (MRP) is government-fixed.
  • Non-urea fertilisers operate under market-determined prices linked to nutrient content.
About Nutrient Based Subsidy (NBS)

·    Subsidized fertilizers under NBS consider nutrient content (N, P, K & S) for farmers.

·    Additional subsidy applies to fortified fertilizers with secondary micronutrients like molybdenum and zinc.

·    Annual subsidy for P&K fertilizers determined based on global/domestic prices, exchange rate, and inventory.

·    NBS aims to boost P&K fertilizer consumption for achieving an ideal NPK fertilization balance (4:2:1 ratio).

( Note: N- Nitrogen , P- Phosphorus , K- Potassium and S- Sulphur )