HC junks FAI plea against retrospective MRP fixation of

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The Delhi High Court today dismissed an appeal by the Fertiliser Association of India (FAI) against its single-judge's order upholding the government's decision to retrospectively fix the maximum retail price (MRP) of phosphatic and potassic (P&K) fertilizers.
A bench of Chief Justice G Rohini and Justice R S Endlaw upheld the High Court's January 6 order saying FAI, which represents fertiliser manufacturers, distributors, importers and others in the sector, has not been able to show that any prejudice was suffered by them due to the Centre's decision.
The government had issued a notification on June 26, 2013, fixing prices of P&K fertilisers with effect from April 1, 2013.

The bench noted in its judgement that a fertilizer company cannot be said to be entitled to the subsidy when it had already received the higher price from the farmer.
"After all, the fertilizer companies cannot on the one hand receive the higher price and on the other hand also receive subsidy, thereby themselves benefiting from the NBS Scheme rather than the benefit thereof flowing to the farmer / consumer of fertilizer," it said.
The bench said that even if the fertilizer companies during the period April 1, 2013 to June 26, 2013 had sold any quantities of fertilizer at a rate higher than that suggested in the impugned office memorandums, would not the only effect thereof would be to disentitle the fertilizer companies from receiving subsidy for that much quantity.

It said that the purpose and intent of giving subsidy to fertilizer companies was to make the fertilizer companies sell at a price lower than that at which they would have otherwise sold without the subsidy.