India sets higher subsidy on SSP fertilizer

11 April 2008 18:04  [Source: ICIS news]

NEW DELHI (ICIS news)-- A new subsidy policy to increase domestic production of single super phosphate (SSP) fertilizer in India and reduce the countries reliance on diammonium phosphate (DAP) is to be introduced, the government said Friday.


Under the new policy, the Government has fixed a uniform all-India maximum retail price of Indian rupee (Rs) 3400/tonne ($85/tonne) for powdered SSP - at present, state governments fix separate SSP prices, while the central Government pays fixed subsidy of Rs1125/tonne to manufacturers.


The Ministry is revise the subsidy rates every month and to ensure quality control on SSP, the Government has stipulated manufacturers market fertilizer only through large SSP producers or through companies that produce urea and NPK complex fertilizers.


The Ministry of Chemicals and Fertilizers said increased availability of SSP would reduce the subsidies the government paid on DAP.


The Ministry said 65% of SSP was produced from low-grade rock phosphate, which was mined locally while DAP was imported or produced from imported rock phosphate or imported phosphoric acid meaning it cost more. 


Prices of DAP as well as its intermediates have been rising in global markets over last several months.


($1 = Rs39.89)

By: Naresh Minocha
+65 6780 4359

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