Global Economy

Govt considering subsidy to offset rise in global prices of P&K fertilisers' raw material


The Centre on Saturday said it is considering subsidies to offset rise in global prices of raw materials of phosphatic and potassic (P&K) fertilisers in a bid to ensure their availability to farmers at subsidised rates across the country. The government is taking all necessary steps to safeguard the interests of farmers during the COVID-19 crisis, it said.

Unlike urea, P&K fertilisers are decontrolled products. The prices are fixed by the manufacturers and the government gives them fixed subsidies each year. For the current fiscal year, subsidies for P&K fertilisers have been kept unchanged.

In a statement, the Fertiliser Ministry said in the last few months, the international prices of raw materials of Di-ammonium

(DAP) and other P&K fertilisers have increased sharply. Prices of finished DAP, etc in the international market have also risen proportionately.

“Despite this sharp increase, DAP prices in India were not increased by the companies till last month. However, some companies have now increased the DAP price,” it said.

However, the government is fully sensitive to the concerns of farmers and is already taking steps to tackle the situation so that the farming community can be saved from the effects of this price rise of P&K fertilisers (including DAP), it said.

On the pricing front of DAP, the government has already asked all the fertiliser companies to sell their old stocks of DAP, etc at old prices only, it said.

“Additionally, the Government of India is also considering the subsidy rates to offset the rise in international prices of raw materials of P&K fertilisers and DAP in order to support the farmers’ cause and lessen the financial burden on them,” the ministry noted.

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The government is fully aware of the situation, and it is being closely monitored at a very high level in the government, it said. In accordance with its farmer-friendly approach, the ministry said the government is committed to ensuring the availability of P&K fertilisers to farmers at affordable prices, it added.

Fertiliser companies had raised the retail prices of P&K fertilisers like DAP in line with the global market effective from April 1. But they were directed not to increase the rates for the time being. PTI LUX

ANU ANU 05151937 NNNN



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