The Hindu Business Line : Uniform freight reimbursement policy for fertilisers cleared

Explaining the new freight reimbursement policy, Dr J.S. Sharma, Secretary, Department of Fertilisers, said “Earlier there was different freight policy for different fertilisers.”

Fixed rate

Except in case of indigenous urea, all other fertilisers used to get a fixed rate and so the companies were only supplying to nearby areas leading to shortages in interior and far flung areas, he said.

“For example all DAP units are located in coastal areas and there used to be shortages in the interior areas as well as far away States. But under the new system the Government will reimburse freight cost from plant/port to the block level on actual basis,” he said.

“For this, rates would be calculated based on actual railway freights. In the case of road transport, it will be based on the average lead distance of all the blocks in the district and also State level truck rates from rake point to the block,” he said.

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