In April 2010, government had decontrolled the phosphatic and potassic (P&K) (non-urea) fertilisers by giving freedom to the manufacturers to fix MRP (maximum retail price).
The Centre offers a fixed nutrient based subsidy (NBS) on P&K nutrients to keep domestic rates lower.
The government decided to continue the existing subsidy rates for 22 grades of P&K fertilisers under the NBS policy for the current year, Fertiliser Ministry said.
Separate subsidy for boron and zinc coated fertilisers have also been continued, the Ministry said.
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It added that the movement plan for P&K fertilisers has been freed to reduce monopoly of few companies in a particular area so that any company can sell any P&K fertiliser across the country.
The Ministry also said that the government will have legal tools to direct fertiliser suppliers to supply them in any part of the country, specially where it is short in supply.
There are 19 units producing phosphatic fertilisers. The entire requirement of about 30 lakh tonnes of MOP is met from imports since there is no resource of potash in the country.
The final settlement of subsidy claims will continue to be done only after the acknowledgment of receipt of fertilisers by retailers.