Cab Sec takes stock of rising fertiliser prices

Concerned over doubling of fertiliser prices within a year, government today discussed ways to control the input cost of farm nutrients, ahead of Rabi (winter) crop season.

Cabinet Secretary Ajit Kumar Seth held discussions with Fertiliser Secretary Sutanu Behuria on the issue and reviewed the situation, sources said.

Weakening of rupee against dollar and a rise in global prices have led to about 100% increase in the fertiliser prices in the last one year.

Of the three main fertilisers, major shortages have been witnessed in potash and Di-ammonium Phosphate (DAP) in the face global scarcity and high prices.

The situation is slightly comfortable in urea.

The country meets 40-45 per cent of about 600 lakh tonnes requirements through imports. With the weakening of the rupee against dollar, the landed costs of these nutrients have gone up further in the last few months.

Decontrol of prices in the case of DAP and potash in April, 2010 has also led to the increase in prices, sources said. Under the new pricing regime, the fertiliser companies have been given freedom to fix their maximum retail price (MRP).

The DAP retail price has risen to Rs 910 per bag (50 kg) from Rs 496 per bag a year ago.

The price tag of potash, also known as Muriate of Potash (MoP) increased to Rs 565 per bag from Rs 222 per bag.

Similarly, the selling prices of other nutrients like nitrogen, phosphorus, and potassium have more than doubled in the range of Rs 800-935 per bag.

Normally, the demand for fertiliser in the rabi season is estimated to be around 278 lakh tonne.