February 28, 2012
India asks firms to keep imported fertilisers in ports
Poor demand for India's imported fertilisers, especially potash and DAP, which are expected to arrive in February and March, has led the Indian government to request that fertiliser firms not to unload their cargoes for port.
This move could help the Indian government save Rs 1,000 crore (US$203 million) in the subsidy bill of this fiscal.
In a recent order, India's fertiliser ministry said that it has been decided that di-ammonium phosphate (DAP), muriate of potash (MoP) and complex fertilisers except urea arriving during the months of February and March will not be dispatched from ports to any state till further orders.
As India's govt decided to cut subsidy on these fertilisers for the next fiscal, the decision could help the department in saving up to INR1,000 crore (US$203 million) in the subsidy bill of this fiscal, sources said, adding that about 400,000 tonnes of nutrients are expected to reach ports in these two months. After the decontrol of non-urea fertilisers, DAP and MoP prices have more than doubled to INR20,000 (US$407) a tonne and INR12,000 (US244) a tonne, respectively.