July 9, 2012
Indian P&K fertiliser distribution''s freight policy gets approval
The proposal for refunding the distribution freight of de-controlled phosphatic and potassic (P&K) fertilisers has been accepted by the Indian government.
Analysts, however, said this would not have any significant impact on fertiliser subsidy.
"The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Department of Fertilisers for reimbursement of freight for distribution of P&K fertilisers under the NBS policy for the period from January 1, 2011 to March 31, 2012, with effect from April 1, 2012," stated an official release.
According to industry officials, freight reimbursement for the distribution of P&K fertilisers to fertiliser companies was pending for the January 2011-March 2012 period.
"The freight policy shall be applicable on all P&K crop nutrients, except single super phosphate. This would ensure movement of fertilisers to all parts of the country, including areas having difficult topography," the release added.
According to the notified Nutrient-Based Subsidy (NBS) scheme for this financial year, there would be no secondary movement freight subsidy for deregulated fertilisers. However, there is a special reimbursement provision for areas to which access is difficult. "This would ensure equitable prices of P&K fertilisers across all regions. All farmers in the country would benefit," the release said.
Before the NBS policy was implemented, producers of P&K fertilisers were reimbursed according to the Uniform Freight Policy for urea. Between April 2010 and December 2010, freight reimbursements were carried out according to the NBS policy. P&K fertilisers were brought under the NBS policy on April 1, 2010.