Centre directs fertiliser companies not to hike MRP on non-urea products, says 'farmers are priority'

The order was issued to fertiliser companies at a high-level meeting on Thursday in the wake of an increase in domestic retail prices of non-urea soil nutrients

Press Trust of India April 09, 2021 19:07:22 IST
Centre directs fertiliser companies not to hike MRP on non-urea products, says 'farmers are priority'

Representational image. Reuters

New Delhi: The Centre on Friday directed fertiliser companies not to increase the maximum retail price (MRP) of non-urea fertilisers such as DAP and asked them to sell at old rates.

A direction in this regard was issued to fertiliser companies in a high-level meeting on Thursday in the wake of an increase in domestic retail prices of non-urea soil nutrients in line with the global market.

Retail prices of non-urea fertilisers such as di-ammonium phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while the Centre gives them fixed subsidies each year.

"...The Government of India had called a high-level meeting and directed fertiliser companies not to increase the price of DAP, MoP and NPK and fertiliser companies agreed with it," Minister of State for Chemicals and Fertilisers Mansukh Mandaviya told PTI.

The fertiliser companies have been asked to sell the complex fertilisers at old rates. "Farmers will continue to get DAP, MoP and NPK nutrients at old rates," he said.

The minister separately tweeted that "Giving priority to the interest of the farming community, there won't be any increase in prices of fertilisers".

In view of the sharp rise in global prices of raw materials, domestic fertiliser companies and cooperatives have increased the retail prices of DAP and other complex fertilisers.

For instance, KRIBHCO, MCFL, Zuari Agro Chemicals, Paradeep Phosphates have increased retail prices of DAP to Rs 1,700 per bag with effect from 1 April.

Similarly, Chambal Fertiliser and Chemicals Ltd (CFCL) has hiked DAP rates to Rs 1,600 per bag, and Indoram India Pvt Ltd to Rs 1,495 per bag from Rs 1,200 per bag.

However, fertiliser cooperative IFFCO, which has printed a new rate of Rs 1,700 per bag on the fresh stock of DAP, on Thursday clarified that it was a tentative cost and not meant for sale to farmers.

IFFCO spokesperson had said the cooperative will sell the old stock of 11.26 lakh tonne of complex fertiliser at an old rate of Rs 1,200 per bag.

"I have instructed our marketing team to sell only previously packed material with old rates to farmers. We always take decisions on farmer's first approach," IFFCO CEO and Managing Director US Awasthi had tweeted. DAP is a widely used fertiliser by farmers after urea in the country.

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