Cabinet to take final call on NBS for urea: Fertiliser Secy

The planning commission has put forward their recommendations for the fertiliser policy and more importantly, for the Nutrient-Based Subsidy (NBS) policy. Also, Saumitra Chaudhuri, member of PM's Economic Advisory Council (PMEAC) told CNCB-TV18 that the Cabinet note for nutrient-based subsidies on urea has been prepared as the differences with the Department of Fertiliser have been ironed out.

In an interview with CNBC-TV18, Sutanu Behuria, Fertiliser Secretary, talked about how much headway has happened on that front. A brief note on NBS: Fertilser Minister MK Alagiri has certain issues with the report of the Committee of Secretary and he cannot accept all of it. In fact, even Fertiliser Secretary does not agree with many of the recommendations mentioned in the report and therefore, there is a need of a politically feasible solution, process for which is likely to get delayed due to the disputes between the Committee and the ministry. However, Cabinet decisions on both urea decontrol and the Nutrient-Based Subsidy (NBS) policy will prove as crucial milestones for the fertiliser sector since introduction of the NBS scheme will help boost investment in the cash-starved urea segment. At present, fertilisers are sold at government-fixed prices, which are lower than their production and import cost. However, under the NBS policy, the companies can increase their production levels and make profits by fixing retail fertiliser prices. Moreover, if implemented, the scheme will help keeping a tab on urea prices. Urea decontrol is also likely to help reduce government