To promote production of multi-nutrient fertiliser single super phosphate (SSP), government today removed minimum capacity utilisation criteria for manufacturing plants for availing subsidy.
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.
Due to the minimum capacity utilisation criteria, a large number of small SSP units which failed to reach the required production level were not able to avail of subsidy, in spite of having passed the subsidy benefit to farmer in the form of lower MRP.
"..Union Cabinet, chaired by Prime Minister Narendra Modi today approved the proposal for removing the minimum capacity utilisation criteria for the SSP units to be eligible for the subsidy," according to an official statement.
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, etc.
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, it added.
This new policy will help revive smaller SSP units and encourage new SSP units to come up in the country to further boost indigenous production of SSP. It would also provide freedom to the SSP manufacturers to plan their production as per the market dynamics, the statement added.
