Cos may face action for not selling fertiliser at new rates

The Centre will write to the state governments to take action against those fertiliser companies, retailers and dealers that are not implementing its decision to slash rates of non-urea nutrients by up to Rs 5,000 a tonne.
Earlier this month, the government had announced reduction in retail prices of non-urea fertilisers including DAP by up to Rs 5,000 following drop in global prices of raw materials.
However, the government said some of the companies are not implementing this decision.
Prices of non-urea fertilisers like DAP, MoP and NPK were discussed in a meeting headed by Information Broadcasting Minister Venkaiah Naidu.

Fertiliser Minister Ananth Kumar and Minister of State for Agriculture Parshottam Rupala were present in the meeting.
Kumar said the maximum retail price of DAP, MoP and NPK was reduced on July 4.

"The reduced rate of non-urea fertilisers has been announced. Some companies are not implementing, especially at retailer and dealers level.
"We will write to state chief ministers that fertiliser is an essential commodity and it should take action to ensure farmers get non-urea fertilisers at reduced rates in the ongoing kharif season," he said.
Briefing media after the meeting, Naidu said: "DAP, MoP and NPK rates are reduced. In our discussion we got to know that some companies are not implementing it. We decided that from Monday whatever rate the government has decided will be implemented,"

Stating that fertiliser is an essential commodity, Naidu said the ministry concerned will write to state governments to take action against those which are not implementing the new rates.
"All fertiliser companies have accepted that they will implement from Monday. It is a major reduction. This is the biggest relief to farmers," he added.
The retail price of Di-ammonium Phosphate (DAP) has been cut by Rs 2,500 to Rs 22,000/tonne, Muriate of Potash (MoP) by Rs 5,000 to Rs 11,000/tonne, while complex fertilisers rates have been brought down by Rs 1,000/tonne.
Kumar said the reduction in prices of non-urea fertilisers would promote balanced use of fertilisers and increase farm output.

DAP, MoP and NPK are decontrolled fertilisers, the MRP of which are determined by the manufacturers, while the government offers fixed subsidy every year. Urea price is controlled by the government and its MRP currently stands at over Rs 5,300/tonne.
On an average, the domestic demand of DAP is 100 lakh tonnes, MoP 25 lakh tonnes and NPK fertiliser 90 lakh tones.