The government is contemplating doing away with the retention pricing and concession schemes for the fertiliser sector.
An indication to this effect was given here today by fertiliser minister SS Dhindsa who said the fertiliser industry could face new challenges only by bringing in greater all-round efficiencies.
"The continuation of the present retention pricing and concession schemes can become counter-productive to higher achievement."
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The minister, who was inaugurating a three-day seminar of the Fertiliser Association of India, said the industry had to change its mind-set to become internationally competitive. "It is precisely because of this that the department of fertilisers has recently reviewed the RPS mechanism. The government intends to improve efficiencies and productivity in the industry," he added.
Dhindsa said the government was also concerned about the increasing subsidy bill for fertilisers and efforts had to be made, both by the government and the industry, to reduce this heavy burden on the budgetary resources.
The minister said that the seventh and eighth pricing period mechanism was under the active consideration of the government and it had also held deliberations with the members of the industry and the state government on the fertiliser policy.
He emphasised correcting the imbalance in the use of various fertilisers and said this could have serious repercussions on the agricultural production.