To make all single super phosphate (SSP) units eligible for subsidy, the government has notified the removal of minimum capacity utilisation criteria for availing subsidy by fertiliser manufacturing plants.
It was mandatory for the SSP units to utilise minimum 50 per cent of their recognised production capacity or to produce 40,000 tonnes, whichever is less, per year to become eligible for subsidy.
On March 10, the Cabinet had approved the proposal for removing the minimum capacity utilisation criteria for the SSP units to be eligible for the subsidy.
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"...To do away with the provision of mandatory 50 per cent capacity utilisation or minimum annual production of 40,000 tonnes for SSP units to be eligible for subsidy..," the Fertiliser Ministry said in a notification.
Due to this criteria, a large number of small SSP units which failed to reach the required production level were not being able to avail subsidy, in spite of having passed the subsidy benefit to farmer in the form of lower MRP, the government had said while announcing the Cabinet decision.
SSP is a phosphatic multi-nutrient fertiliser, which contains 16 per cent phosphate, 11 per cent sulphur, 16 per cent calcium and some other essential micro-nutrients. It is also considered as a substitute to DAP, which is largely import based.
It is one of the cheapest chemical fertiliser and is more suited for crops like oilseeds, pulses, horticulture, vegetables, sugarcane, among others.
This new policy to remove the minimum capacity utilisation criterion would put the SSP units on the same footing as other fertilizers and they would be eligible for subsidy irrespective of quantity of SSP produced and sold for agriculture purposes.
This new policy would also help revive smaller SSP units and encourage new units to come up in the country to further boost indigenous production of SSP. It would also provide freedom to SSP manufacturers to plan their production as per the market dynamics.
