CCEA approves changes in urea policy

The import price parity calculation has been changed to include customs and port handling charges

In a change aimed at boosting domestic fertiliser production, the CCEA approved an amendment to the Urea Policy of 2015 whereby benefit of higher subsidy would be granted to units which produce more than their reassessed capacities (RACs). The ceiling imposed on production beyond RAC has also been raised. The import price parity (IPP) calculation has been changed to include customs and port handling charges.

 

“All stakeholders — farmers, urea manufacturers and the government — would benefit,” went an official statement. At present, the country produces a little over 24 million tonnes of urea annually and imports about eight mt.

 

“Further, to address any future fluctuation in IPP that would have adverse impact on the production beyond RAC, the department of fertiliser has been authorised to take an appropriate decision, in consultation with the department of expenditure,” the statement added.