The government today announced a new pricing policy for crop nutrients, widely used by farmers, to augment investment in the sector.
The New Urea Investment Policy was approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh based on the recommendations of the Abhijit Sen Committee.
Under the fresh norms, the international price-parity formula for the domestic urea manufacturers would be adopted for calculation of subsidy and cost of production.
Import price parity (IPP) for the revamp of existing units would be recognised at 85 per cent in a price band of $250-425 per tonne, while the same for expansion of capacity would be 90 per cent. The urea from the revised units of HFCL and FCIL will be recognised at 95 per cent of IPP.