SME Times News Bureau | 29 Apr, 2011
The Cabinet has approved the proposals for revision of benchmark prices of Phosphatic and Potassic (P&K) fertilizers for the year ending March 2012, informed the government in a press note on Thursday.

According to the note, the Union Cabinet has accorded approval for the proposals for revision in the benchmark prices for Nutrient Based Subsidy (NBS) 2011-12, w.e.f 1st April, 2011 for Phosphatic and Potassic (P&K) fertilizers.

This will enable the manufacturers and importers to import fertilizers and fertilizer inputs and undertake domestic production and make fertilizers available to the farmers in 2011-12.

The Department of Fertilizers announced NBS for 2011-12 w.e.f 1sf April 2011 in March 2011 to enable the importers and manufacturers of fertilizers to enter into supply contracts and make fertilizers available to the farmers in the country in 2011-12.

However, given the prevailing international situation of tight availability of fertilizers and their spiraling prices in the international market, fertilizer companies reported their inability to finalize supply contract at the prices benchmarked for NBS 2011-12.

The matter was examined by an Inter-Ministerial Committee, which recommended a revision in the benchmark prices for NBS 2011-12 to enable availability of fertilizers. Accordingly, the Department of Fertilizers submitted a Note containing proposal for revision in the benchmark prices for NBS 2011-12, w.e.f. 1st April 2011 for approval of the Government.

The farmers in the country will be able to buy fertilizers at subsidized rates at Maximum Retail Prices (MRPs).

Budgetary provision for P&K fertilizers for 2011-12 is Rs.33,500 crore. However, the total subsidy outgo for P&K fertilizers for 2011-12 will depend on the overall sale of fertilizers in 2011-12.