Govt mulls revision of fertiliser prices

The government today said it was considering revision of delivered prices for phosphatic and potassic (P&K) fertilisers along with the revision of freight charges of urea to lessen the impact of increased transportation costs.

"The government is examining the issue to increase the normative delivered price of P&K fertilisers to cushion the impact of increase in rail freight," Minister of state of chemicals and fertilisers B K Handique said in a written reply in Lok Sabha.

"Normative delivered price" is the price of decontrolled P&K fertiliser, inclusive of the cost of freight movement upto the block level.

The minister also said under the new policy, provisions of New Pricing Scheme of urea units, there is a provision for revision in rates of primary freight on account of rail freight and annual increase/decrease in the wholesale price index of diesel for the road component.

He, however, said as the urea and the decontrolled P&K fertilisers were made available to farmers at statutorily notified maximum retal price (MRP) or indicative MRPs, the revision in freight has no financial implications for the farmers.

Replying to another question, Handique said the government was exploring possibilities of revival of closed units of Fertiliser Corporation of India, including Sindri and Ramagundam plants.

He, however, said that since the matter was at exploration stage the details have not been worked out yet.