Fertiliser major IFFCO today slashed the prices of Di-Ammonium Phosphate (DAP) by Rs 75 per bag (of 50 kg) to Rs 1,125 a bag due to fall in global prices.
“We are reducing the price of DAP to Rs 22,500 per tonne from Rs 24,000 per tonne effective from April 1,” IFFCO Managing Director U S Awasthi told PTI.
Accordingly, he said the rate of DAP will come down to Rs 1,125 per bag from Rs 1,200/bag, he added.
The new rates of DAP would be applicable on the 1.5 million tonnes stock lying with cooperative members, he said.
“Global prices have come down by Rs 3,500 per tonne. The government has reduced its subsidy by about Rs 2,000 per tonne and we are cutting the MRP by Rs 1,500 per bag,” Awasthi explained.
The MRP of other P&K fertilisers such as MoP would also be lowered, he said.
While announcing subsidy rates for P&K fertilisers for this fiscal, Finance Minister P Chidambaram today said the government “expects that MRP will now be lower by Rs 1,500 per tonne for DAP and by Rs 1,000 for MoP.”
The Fertiliser Ministry will put in place a mechanism to ensure lowered MRP is fixed by manufacturers and benefit of reduction in global price is passed on to farmers, the minister said.
“If there is any violation or contravention, there will be a monitoring mechanism which will take corrective step to ensure that the benefit is passed on to farmers,” Chidambaram said.
The Cabinet today slashed subsidy on phosphatic and potassic (P&K) fertilisers such as DAP for this fiscal in view of falling global prices, a move that could help the government save Rs 5,000 crore.