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 ) |