March 5, 2012
India cuts subsidy on P&K fertilisers
For the 2012-13 fiscal, Indian government decided on Friday (Mar 2) to cut the amount of subsidy on decontrolled fertilisers, phosphatic (P) and potassic (K).
India's Cabinet Committee on Economic Affairs (CCEA) approved the Fertiliser Ministry's proposal to reduce subsidy on P and K fertilisers under the Nutrient Based Subsidy (NBS) policy, sources said. Due to the strengthening of the rupee and bearish global price, the Fertiliser Ministry had recommended reduction in subsidy on nitrogen (N) and potassium (K), which will be INR24 (US$0.48) per kilogramme each and INR21.8 (US$0.44) per kilogramme on phosphate (P) for the 2012-13 fiscal. For the 2011-12 fiscal, subsidy of N, P and K has been fixed at INR27.15 (US$0.55) per kilogramme, INR32.33 (US$0.65) per kilogramme and INR26.76 (US$0.54) per kilogramme, respectively, under the Nutrient Based Subsidy (NBS) policy.
The new rates will be effective from April 1. Under the NBS regime introduced from April 1, 2010, retail prices of 22 varieties of P&K fertilisers are freed. India's government fixes subsidy on nutrients like N, P and K, which is linked to the import parity price of fertilisers, di-ammonium phosphate (DAP) and muriate of potash (MoP).