Capacity utilisation criterion removed for SSP fertiliser subsidy

The union cabinet on Thursday approved removal of the minimum capacity utilisation criteria for availing subsidy by single super phosphate (SSP) fertiliser manufacturing plants with a view to promoting the production of this crop multi-nutrient.

Earlier, the eligibility criteria for subsidy for SSP units was to utilise a minimum 50 percent of their recognised production capacity, or to produce 40,000 tonnes, both per annum and whichever was less.

"Union Cabinet today (Thursday) approved the proposal for removing the minimum capacity utilisation criteria for the SSP units to be eligible for the subsidy," a cabinet communique here said.

SSP is a phosphatic multi-nutrient fertiliser comprising 16 percent phosphate, 11 percent sulphur, 16 percent calcium and some other micro-nutrients.

The new policy to remove the minimum capacity utilisation criterion would put the SSP units on par as other fertilisers, and they would be eligible for subsidy irrespective of quantity of SSP produced and sold for agriculture purposes, the statement added.

This new policy will help revive smaller SSP units and encourage new SSP units to come up in the country to further boost indigenous production of SSP. It would also provide freedom to the SSP manufacturers to plan their production as per the market dynamics, the statement added.