India’s modified fert subsidy to boost output

01 May 2008 17:46  [Source: ICIS news]

NEW DELHI (ICIS news)--India has introduced a maiden policy for manufacture of subsidised micronutrients-coated fertilizers to improve soil health and crop yields, the government announced on Thursday.

The policy would allow manufacturers of major fertilizers such as urea to produce fortified or coated fertilizers up to a maximum of 20% of their total production of respective subsidised fertilizer.

Manufacturers would be allowed to sell zincated urea and boronated single superphosphate (SSP) up to 10% above the corresponding maximum retail price of the uncoated urea and SSP.

The government, whose cabinet Committee on Economic Affairs (CCEA) approved the policy, would habitually review this percentage to take into account the demand and availability of such products, an official stated.

In the case of other coated products, they would be allowed to charge 5% more than the respective notified prices of all other subsidised fertilizers.

The maiden policy for blending of secondary and micronutrients with fertilizers containing primary nutrients (nitrogen, phosphate and potash) would widen the choice for farmers and thus help increase farm productivity, the government said.

According to industry sources, the country so far did not have any price policy for blending secondary and micro-nutrients with staple, subsidised fertilizers.

This discouraged manufacturers from producing blended products, forcing farmers to buy either separately secondary or micro-nutrient products or simply forgo their usage.

By: Naresh Minocha
+65 6780 4359

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