Working Group On Fertilisers Suggests Hike In Urea Price

The Ninth Plan working group on fertilisers has recommended a steep initial hike in urea prices followed by a 10 per cent annual increase from 1998-99 onwards.

Ascribing the fall in soil nutrient balance to decontrol of phosphatic and potassic fertilisers in 1992 while keeping nitrogenous nutrients under price control, the group said this led to a fall in agricultural productivity in certain regions.

Imbalance in nutrient pricing has led to deterioration of the nutrient balance and continued mining of the reserves of phosphate and potash is now manifesting itself in the declining agricultural productivity..., the report says.

The group points out that policy changes introduced in the fertiliser sector during early 90s has resulted in a significant slowdown in the overall consumption of plant nutrients besides aggravating imbalance in nutrient use.

 

In 1990-91, the consumption ratio of nitrogen, phosphate and potash was 6.02:2.43:1 which tilted more towards nitrogen in 1994-95 with the ratio becoming 8.45:2.61:1. During 1990-91 consumption of nitrogen, phosphate and potash was 7.8 million tonnes, 3.2 million tonnes and 1.3 million tonnes respectively, which rose to 9.5mt in case of nitrogen but fell to 2.93mt for phosphatic and 1.12mt for potassic fertilisers in 1994-95.