The Hindu Business Line : Single super phosphate price fixed at Rs 3,400 a tonne

New Delhi, April 11 Farmers all over the country will now pay the same price for single super phosphate (SSP) with the Cabinet Committee on Economic Affairs (CCEA) today announcing a uniform all-India MRP of Rs 3,400 a tonne for powdered SSP with effect from May 1 this year.

The MRP of granulated SSP will be Rs 400 a tonne higher than that of powdered SSP and MRP of boronated SSP, which can be either in powered or granulated form, would be 10 per cent higher than that applicable to powdered and granulated SSP respectively.

Simultaneously, the subsidy has also been raised from the existing ad-hoc amount of Rs 1,125 a tonne.

The basic subsidy amount for SSP manufactured with imported or indigenous rock phosphate has been fixed at Rs 5,630 and Rs 3,658, respectively.

Till now, SSP was the only fertiliser for which the MRP was decided by the State Governments and consequently, the price varied considerably and was in the range of Rs 2,800-5,800.

This discrepancy had lead to inter-State transfer of SSP by traders profiteering from higher prices in neighbouring States.

Uniform pricing would make such activities unprofitable.

Subsidy rate

According to the CCEA decision, the Department of Fertilisers (DoF) would estimate the subsidy rate on a monthly basis based on the global price of sulphur and nutrient price of phosphorus in DAP.

Based on the estimated rate of the DoF, the subsidy component will also change and in the present situation, would lead to higher subsidy levels based on international prices.

“This will bring uniformity in the pricing of all phosphorus and potash (P&K) fertilisers and also allow sharing of cost of sulphur by the farmer as a valuable secondary nutrient,” the Science and Technology Minister, Mr Kapil Sibal, told reporters after the CCEA meeting.

Modalities

Explaining the modalities, Mr Sibal said the monthly subsidy on SSP manufactured with imported rock phosphate will be worked out on the basis of average of the lowest and highest prices for the preceding month or actual weighted average of imported sulphur and rock phosphate arrived for the same period, whichever is lower.

“All SSP will be marketed by large producers, manufacturing more than one lakh tonnes of SSP annually or through NPK/urea manufacturers who are already covered under the subsidy concession scheme and are having a wide marketing network,” he said.

More Stories on : Fertilisers | Agricultural Policy

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