 "Non-urea fertiliser prices slashed by up to Rs 5,000/tonne")
The state-run fertiliser firms Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers Ltd (NFL) as well as private firm Indian Potash Ltd (IPL) have agreed to reduce the price of non-urea fertilisers, the fertiliser minister said.
The retail price of DAP has been cut by Rs 2,500 to Rs 22,000/tonne, muriate of potash (MoP) by Rs 5,000 to Rs 11,000/tonne, while complex fertilisers rates have been brought down by Rs 1,000/tonne.
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For a bag of 50 kg (kilogramme), the effective rate for DAP would come down by Rs 150, MoP by Rs 250, and other NPK fertilisers by Rs 100. NPK stands for nitrogen (N), phosphorus (P), and potassium (K).
"The ministry has taken a path-breaking decision. We have decided to bring down prices taking into account the fall in international prices of raw materials," Kumar told reporters here.
The rate cut, which would be effective immediately, would entail a benefit of Rs 4,500 crore to farmers, he said, adding the move would help promote balanced use of fertiliser.
Non-urea fertiliser prices have been reduced for the first time in past 15 years, Kumar said.
DAP, MoP, and NPK are decontrolled fertilisers, the maximum retail prices (MRP) of which are determined by the manufacturers, while the government offers fixed subsidy every year. Whereas urea price is controlled by the government and its MRP currently stands at Rs 5,300/tonne.
On average, the domestic demand of DAP is 10 million tonnes, MoP 2.5 million tonnes and NPK fertiliser nine million tonnes per year.
"All-out efforts have been made to ensure there will not be any shortage of fertilisers in our country for this kharif season and farmers can plan their sowing without any apprehension," Kumar said.
“The country is having good monsoon after two years of drought. Due to good rains, we expect a bumper output this year," he added.