Government has notified a new uniform freight subsidy scheme for urea, a move that is expected to ensure timely and adequate availability of soil nutrient in remote areas.
In a notification issued by the Department of Fertiliser, the government also said freight subsidy rates will be reimbursed on the normative per tonne per kilometre basis.
The district-wise normative road freight rates have been computed in "a scientific manner".
The department has approved the freight rates for the direct road movement of fertilisers up to 500 km from the plant or the port to block level as recommended by the tariff commission. This step will ensure availability of urea in remote areas while keeping cost under control.
"It will be one of the major tools to maintain demand and supply uniformly all over the country up to the block level and will benefit farmers during the peak demand season," Fertiliser Minister Ananth Kumar had earlier said.
Earlier, in the name of freight, retailers and dealers used to charge more on every bag of urea. Now, on the basis of recommendations of the tariff commission, a more transparent and uniform freight tariff policy has been approved, Kumar said.
Following this, the companies will not be allowed circuitous routing of fertilisers, which will save subsidy and promote efficient transport of fertilisers.
Freight for urea has always been driven by considerations of serving the farming population at large, including those in remote and hilly areas.
