Frieght Subsidy on Fertilizer

A per uniform freight subsidy policy, the rail transportation subsidy from port/plant upto nearest rake point is fully reimbursed on the basis of Railway Receipt (RR) issued by Indian Railways. The normative transportation from the nearest rake point to block headquarters is reimbursed on the basis of per tonne, per KM notified by the Department of Fertilizers on the basis of Tariff Commission recommendation after a detailed study conducted by them. Therefore, Government is paying full inland transportation cost to the manufacturers/importers for moving fertilizers from plant/ports to various destinations in the country upto block level. It is incumbent on the companies to supply fertilizer from nearest rake point to retailer through whole sellers or directly at company’s cost. Since the recommendation of the Tariff Commission for road freight varies from state to State, district to district etc., the cost incurred/reimbursed by fertiliser companies to retailers through whole sellers or directly is not maintained by Department of Fertilizers.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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DNM/AS