Govt okays freight policy for distribution of P&K fertilisers

This will also ensure equitable prices of P&K fertilisers across all regions

The government today approved a proposal for reimbursing the freight on distribution of de- controlled phosphatic and potassic (P&K) fertilisers.

P&K fertilisers have been brought under the Nutrient Based Subsidy (NBS) policy as of April 1, 2010.

"The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Department of Fertilisers for reimbursement of freight for distribution of P&K fertilisers under NBS policy for the period from January 1, 2011 to March 31, 2012 and with effect from April 1, 2012 onwards," an official release said.

The freight policy shall be applicable on all P&K crop nutrients, except single super phosphate (SSP). This will ensure movement of fertilisers to all parts of the country including areas having difficult topography," it added.

This will also ensure equitable prices of P&K fertilisers across all regions. All farmers in the country will be the beneficiaries, the release said.

Before the implementation of the NBS policy, the P&K fertilisers producers were reimbursed as per the Uniform Freight Policy in line with urea. This policy was discontinued following the implementation of NBS, it added.

Between April 1, 2010 and December 12, 2010, freight reimbursements were made according to the NBS policy, it said.

To rationalise the freight reimbursement, a separate freight policy for P&K fertilisers has been approved with effect from January 1, 2011, it added.
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