CCEA approves new fertiliser concession scheme

The new scheme, to be effective retrospectively from April 1, 2008, provides a realistic framework for computing input cost, coversion and handling, CCEA observed.

Under the new scheme, indigenous Di-ammonium phosphate (DAP) has been brought at par with imported DAP for calculating concessions. "Providing concession to indigenous DAP on basis of import parity price will ensure competitiveness and provide a rational basis for payment of concession," Prithviraj Chavan Minister of State, Prime Minister's Office (PMO) said.

Welcoming the government decision, Fertiliser Association of India (FAI) said that the new scheme, by and large, meets the expectations of the industry. "Industry is equally keen that the subsidy dues are disbursed without any delay. Since the farmer is paying only 15 per cent of the actual cost of fertiliser, the rest has to come from the government if the companies are to avoid working capital crunch", Satish Chander, director general, FAI said.

The CCEA decided that Department of Fertiliser would maintain a buffer stock of 3.5 lakh tonnes of DAP and one lakh tons of MOP to meet any exigency.

The CCEA also sanctioned Rs 429.85 crore for a centrally sponsored scheme on "national project on management of soil health and fertility". The main components of the scheme will be strengthening of soil testing laboratories and promotion of integrated nutrient management.