The decision may affect the supply of SSP in the state as the industry is apprehensive of selling the product without a valid pricing policy that prescribes high subsidy rates.
SSP, an alternative to DAP (diammonium phosphate), is used in oilseeds, pulses, sugarcane and horticulture cultivation.
The court intervention has come after a local SSP manufacturer, Mukteshwar Fertilisers Ltd, complained against a specific clause in the policy that disqualifies fertiliser firms producing less than 100,000 metric tonnes (Mt) from directly selling their SSP brands.
This is the second such stay, after the Andhra Pradesh High Court, acting on a petition filed by Andhra Sugars, had also given a stay order against the policy some months ago.
According to industry sources, the 100,000 Mt production clause in the new policy had effectively barred 64 out of a total of 74 SSP manufacturing units from selling SSP through their own marketing networks.
The policy wanted all these companies to ink marketing tie-ups with big fertiliser firms and route their products through the latter's marketing network. The marketing partner was given the responsibility to ensure the quality of the product.
Though the government had seen this as an indirect pressure on companies to increase their production capacities and thereby increase the quantity of SSP production, the industry found this to be a discriminative measure favouring big firms.
The industry also disagreed with the government perception that the bigger marketing partners will be able to improve the production quality of smaller units.
Ministry officials said that they have asked the industry to ensure adequate supply of SSP fertiliser in the country.
The SSP pricing policy, which increased the subsidy level of SSP fertilisers, was expected to boost the otherwise declining SSP production in the country.
In the absence of a policy, majority of the companies including bigger ones like Tata Chemicals, Khaitan Chemicals and Dharamsi Morarji Chemicals had been idling their installed capacities in recent years. Of the combined production capacity of 69,50,000 Mt, the SSP production for 2007-08 was just 19,96,000 Mt.
