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Govt chalks out new pricing policy for SSP

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Ruchi Ahuja New Delhi
Last Updated : Feb 06 2013 | 7:01 AM IST
The government is working on a policy to allow centralised pricing for single super phosphate (SSP), thus stripping off the power from the state governments to fix the maximum retail price of SSP like they do for other fertilisers like di ammonia phosphate (DAP) and urea.
 
The new policy intends to boost SSP's production in the country, a senior fertiliser ministry official said today.
 
"The policy will be announced soon and will make SSP production more viable," he said.
 
SSP contains 11 per cent sulphur, while DAP, another complex fertiliser, is richer in micro-nutrients like phosphorus. However, SSP is the cheapest fertiliser. Further, for crops like oilseeds and pulses, SSP is considered to be a better option vis-a-vis DAP.
 
SSP is available at Rs 160 per 50 kilogram bag. However, DAP costs Rs 480 per 50 kg bag. As the fertiliser has been produced largely in the unorganised sector, it has not received much government support.
 
The SSP industry has seen a decline after the transfer of decision-making power on fixing MRP to the states in 1992, the official said.
 
In 2000, there were around 110 units manufacturing SSP, but this number has gone down to 47 at present.
 
Over the years, the retail price of SSP has not been proportionately revised by the states despite increasing production costs, the official said. For instance, the maximum retail price differs from state to state from Rs 2,820 per tonne in Rajasthan to Rs 3,400 per tonne in West Bengal.
 
The fertiliser ministry had earlier asked the finance ministry to conduct a Cost Price Study on SSP. The finance ministry report has proposed measures like central pricing of SSP, and the pricing and revision of subsidy being linked to DAP.
 
As per the latest industry data available, the SSP production in financial year 2004-05 fell to 2 million tonne from 2.4 million tonne in the same period last year.
 
SSP output in 1997-98 was around 3.8 million tonne. Further, the capacity utilisation during the year is now down to 40 per cent against 47 per cent a year ago.

 
 

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First Published: Jul 06 2005 | 12:00 AM IST

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