The Central government has directed fertiliser companies not to increase the maximum retail price of non-urea fertilisers such as DAP and asked them to sell at old rates. The government’s directive came even as the nutrient-based subsidy rates remained unchanged for phosphatic and potassic (P&K) fertilisers for the current 2021-22 fiscal. According to experts, continuing with the old rates with the same subsidy on p& K fertilisers or the current year will put pressure on retail prices of DAP and NPK soil nutrients amid rise in global prices and falling Indian rupee.
A direction in this regard was issued to fertiliser companies in a high-level meeting on Thursday in the wake of an increase in domestic retail prices of non-urea soil nutrients in line with the global market.Retail prices of non-urea fertilisers such as di-ammonium phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while the Centre gives them fixed subsidies each year.
“The Government of India had called a high-level meeting and directed fertiliser companies not to increase the price of DAP, MoP and NPK and fertiliser companies agreed with it,” Minister of State for Chemicals and Fertilisers Mansukh Mandaviya told PTI.
The fertiliser companies have been asked to sell the complex fertilisers at old rates. “Farmers will continue to get DAP, MoP and NPK nutrients at old rates,” he said.
The minister separately tweeted that “Giving priority to the interest of the farming community, there won’t be any increase in prices of fertilisers”.
In view of the sharp rise in global prices of raw materials, domestic fertiliser companies and cooperatives have increased the retail prices of DAP and other complex fertilisers.
For instance, KRIBHCO, MCFL, Zuari Agro Chemicals, Paradeep Phosphates have increased retail prices of DAP to ₹1,700 per bag with effect from April 1.
