The fertiliser prices cannot be increased under the current scenario, the central government said on April 9. The statement comes in the backdrop of a sharp surge in fertiliser rates, with the country's largest seller - the Indian Farmers Fertiliser Cooperative (IFFCO) - reportedly raising the prices by up to 58 percent.
"It has been decided that in the present circumstances there shall be no immediate increase in prices of fertilisers," Reuters quoted Mansukh Mandaviya, the Union Minister of State for Chemicals and Fertilisers, as saying after a meeting with the major producers.
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.
The Centre, however, has directed the fertiliser companies to not to increase the maximum retail price (MRP) of non-urea fertilisers such as DAP, news agency PTI reported.
"...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," Mandaviya was reported as saying.
"Farmers will continue to get DAP, MoP and NPK nutrients at old rates," he added.
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Fertiliser companies, earlier this week, raised prices by more than a third after rates of potash and phosphate jumped in the global market.
The largest hike was effected by IFFCO, which raised the price of 50-kg bag of DAP to Rs 1,900 - nearly 58 percent higher than the existing rate of Rs 1,200 per bag, CNBC TV18 had reported.
However, IFFCO, which has printed a new rate of Rs 1,700 per bag on the fresh stock of DAP on April 8, 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 U S Awasthi had tweeted.
Other companies - KRIBHCO, MCFL, Zuari Agro Chemicals, Paradeep Phosphates - have increased retail prices of DAP to Rs 1,700 per bag with effect from April 1.
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.
With inputs from agencies.
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