The Hindu Business Line : Single super phosphate: Cabinet nod for more sops soon

New Delhi, July 19 The Department of Fertiliser (DoF) is looking at increasing the ad-hoc concession on single super phosphate (SSP) from the present Rs 975 per tonne to over Rs 1,300. The last time there was a revision in the ad-hoc concession was in 2005 when from Rs 650 per tonne it was increased to Rs 975.

“The Tariff Commission, set up by the Government, has done a study on the issue and recommended that the ad-hoc concession be increased to just over Rs 1,300. The Department has taken the proposal and has sent it to the other concerned ministries for getting their approval,” official sources told Business Line.

Apart from this, the DoF is also looking at Rs 150 per tonne as freight charges. This, however, is subject to the outcome of the Tariff Commission study which would be released in September.

“We expect to get the clearance from the other ministries by the end of the month and then may be early next month might take it before the Cabinet for its approval,” the source added.

SSP, which is commonly known as the poor man’s fertiliser, is the only fertiliser in the country where the retail price is determined by the State Governments. In the case of urea, potassium and phosphates, the retail price is determined by the Central Government.

Average selling price

The Government is also keen on promoting SSP as it is not only a phosphatic fertiliser but also contains other plant nutrients such as sulphur and calcium which enrich the soil. Currently, the average selling price of SSP is around Rs 3,800 per tonne in the country, whereas diammonium phosphate (DPA) is Rs 9,000 per tonne and keeps fluctuating because of the prices in the international market.

“If the proposal is accepted then there could be an additional subsidy burden of Rs 250 crore per year. But because of the pressure on DPA, the Government is very keen on promoting SSP,” the source said.

Currently, the SSP production capacity is around 70 lakh tonnes, but only 25 lakh tonnes is being produced. The DoF also feels that once the ad-hoc concession is in place there could be an immediate increase of two lakh tonnes. According to the source, most of the plants are not operating at full capacity because they are not finding it remunerative.

“Apart from this, there are also concerns on the quality of SSP as some unscrupulous companies are trying to claim the subsidies. So we are also looking at a procedural change in the disbursement of SSP,” the source said.

In the new disbursement scheme, the department has proposed the marketing of SSP to be done by established players whose capacity is more than one lakh tonnes, so as to take care of the quality concerns which are being raised.

More Stories on : Fertilisers | Agricultural Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Farmers to get credit against warehouse receipts of MCX arm

Politics, the catalyst of economics

Single super phosphate: Cabinet nod for more sops soon

Concessions not helpful: Rubber exporters

Buyer resistance hits spot rubber

Demand boosts tea prices at Kochi sale

High volume on offer at Coonoor tea auctions

DSP’s new fund to invest in gold mining companies

Grains output estimated at record 216.13 m tonnes

Alleppey Coir gets GI registration

Pepper futures rebound

Cardamom harvest delayed; prices up Rs 40/kg

Pepper seen weak in near term