Question : RETAIL PRICES OF FERTILIZERS



(a) whether the Government is contemplating to decontrol the retail prices of fertilizers in the country;

(b) if so, the details thereof alongwith the reasons therefor;

(c) whether any objection from any section of the society against the said process has come to the notice of the Government; and

(d) if so, the details thereof and the remedial measures taken by the Government in this regard?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a) & (b) The Government has decided to introduce Nutrient Based Subsidy Policy w.e.f. 1.4.2010, for decontrolled P & K fertilizers, whereby subsidy shall be based on the nutrients i.e. Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) contained in the decontrolled fertilizers i.e. DAP, MOP, Complex Fertilizers, SSP, Triple Super Phosphate and Ammonium Sulphate (AS). The market price of the above said subsidized decontrolled fertilizers will be determined based on the demand supply forces. However, the Government has decided that under the Nutrient Based Subsidy for 2010-11 on the nutrients`N`, `P`, `K` & `S` will be fixed in such a manner that the farm gate prices of non-urea fertilizers are as far as possible, near the current prices, so that the farmers are not adversely affected. The per nutrient subsidy shall be decided annually by Department of Fertilizers based on the recommendations of the Inter Ministerial Committee (IMC).

(c) & (d):Department of Fertilizers has not received any objection from any section of the society so far against the above said decision of the Government.