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Expressing concern over rising fertiliser prices, the All India Kisan Sabha (AIKS) — the farmers’ wing of the CPI(M) — has demanded that the government roll back the nutrient based subsidy (NBS) policy for phosphorous and potassium fertilisers.
Under the NBS policy introduced in April, 2010, the government provides a subsidy on decontrolled (whose MRP is not decided by the government) nutrients such as phosphorus (K) and potash (S).
“AIKS demands immediate scrapping of the NBS regime and the decision to decontrol fertiliser prices... These decisions by the government come at a time when farmers are already amidst extreme distress and reeling under high input prices,” AIKS General Secretary, Mr K Varadha Rajan, said in a statement.
Blaming the government for high fertiliser prices, he said the Centre’s policy decisions in the last two years on the fertiliser front “clearly indicate a nexus between the government, fertiliser industries, unscrupulous dealers and black marketers.”
Prices of Di—ammonium Phosphate (DAP) has more than doubled to over Rs 19,100 per tonne after decontrol of the fertiliser. “Dealers are charging as high as Rs 24,000 per tonne by creating artificial scarcity in some states,” AIKS noted.
Similarly, the farm gate price of potash fertilisers has gone up sharply to Rs 6,300 per tonne and is slated to further rise to Rs 8,500 per tonne (after including local taxes), he added.
AIKS has also opposed the government’s decision to give freedom to fertiliser companies to hike the maximum retail price (MRP) of DAP by more than Rs 600 a tonne over the prevailing rate.
Pointing out that urea prices have increased by 10 per cent in the last one year, the farmers’ body also stressed that the government should reconsider the proposal to decontrol urea prices.
“The government has no assessment of the demand in different districts and no regulation of supply,” he said.
The country has the capacity to produce 125 lakh tonnes of phosphatic fertilisers, of which Di—ammonium Phosphate constitutes about 50 lakh tonnes and other complexes varieties make up the rest.
India imports 50—60 lakh tonnes of urea, 40 lakh tonnes of Muriate of Potash (MoP) and 60 lakh tonnes of DAP every year.
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