(a) whether the prices of phosphatic fertilizer have come down in the international market; and
(b) if so, the head-wise benefits accrued to the Government as well as the Indian companies ?
(a) whether the prices of phosphatic fertilizer have come down in the international market; and
(b) if so, the head-wise benefits accrued to the Government as well as the Indian companies ?
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a): The prices of Phosphatic & Potassic fertilizers such as Di Ammonium
Phosphate, Mono Ammonium Phosphate, Triple Super Phosphate have marginally
declined in the International market in the last six months. However,
weakening of Indian Rupee against US $ in recent past has adverse impact
for the importers.
(b): Government of India has introduced Nutrient Based Subsidy (NBS) policy
for 2010-11 w.e.f. 1.4.2010 for decontrolled Phosphatic & Potassic (P&K)
fertilizers. Under the NBS policy, subsidy fpr indigenous and imported P&K
fertilizers has been announced on annualbasis for 2010-11 based on the
prevailing prices and price trends of fertilizers in the International Market,
it is found that the prevailing price are not substantialy below the price
considered for benchmarking the subsidy under the NBS. As such, there is no
benefit to the Government, as there is no reduction in subsidy. Further, it
seems there may not be any benefit to the fertilizer Companies, as there is
no substantial change in the total delivered cost of phosphatic fertilizers.