India to introduce nutrient-based fert subsidy

18 February 2008 14:13  [Source: ICIS news]

MUMBAI (ICIS news)--India has decided to implement a nutrient-based fertilizer pricing system from April to encourage the use of soil enriching nutrient-based fertilizers rather than the cheaper urea, a senior government official said on Monday.

“Crop production in India has to be stepped up and we cannot increase the area under cultivation, therefore we would have to increase the land productivity, for which a nutrient-based fertilizer would be useful,” JS Sarma, fertilizer secretary in the government, told ICIS news.

The new nutrient-based fertilizer subsidy would be implemented at the start of Kharif season, he added.

“Farmers in India mostly take a cost-based rather than nutrient-based approach, and therefore buy urea, which is cheaper,” Sarma said.

The subsidy would help farmers get fertilizers such as diammonium phosphate (DAP), muriate of potash (MOP) and complex fertilizers at reasonable rates, market players said.

By: Isha Jha
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