Industry & Economy
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Fertilisers
Single super phosphate makers seek higher subsidy
Our Bureau
Mr V.K. Punshi (left), Chairman, Dharamsi Morarjee Chemical Company, with Mr A. Vellayan, Chairman, Coromandel Fertilisers Ltd, at a press conference in the Capital on Tuesday. — Ramesh Sharma
New Delhi
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Aug. 23
SINGLE super phosphate (SSP) manufacturers, under the aegis of the Fertiliser Association of India (FAI), have demanded that the present subsidy of Rs 650 per tonne be increased to Rs 1,300 per tonne.
They have also demanded that the maximum retail price for SSP be fixed by the Union Government. Currently, the Centre decides the selling price for all fertilisers except SSP, which is determined by State Governments. As a result, it is priced differently in each State.
Mr A. Vellayan, Chairman of Coromandel Fertilisers, told newspersons here on Tuesday that the Ministry of Fertilisers has supported the industry's demand for a higher subsidy. The Cabinet Committee on Economic Affairs (CCEA) is likely to consider the issue of raising the subsidy for SSP on Thursday.
According to the SSP manufacturers, increasing the subsidy on SSP will not lead to any net increase in the Government's fertiliser subsidy costs.
"This will not raise the total subsidy bill because a higher SSP output will enable the farmers to replace di-ammonium phosphate (DAP), which is being imported. "So the subsidy that is going in for imported DAP will come down and farmers too would prefer to use cheaper SSP than the relatively costlier DAP," Mr Vellayan said.
SSP production has become unviable because of the high costs of important raw materials such as rock phosphate and sulphur, following which many units have closed down. Between April 2004 and April 2005, the capacity utilisation of the SSP units has dipped to around 47 per cent, he said.
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