Fertilizer availability exceeds Demand

This year sufficient availability of fertilizers was ensured by the Department of Fertilizers in each of the months in Kharif and Rabi at the state level.

Shortages at the local levels were reported in some states. Urea is the only fertilizer whose movement and distribution is under the partial control of the Government of India (GOI). GOI is responsible for supply urea up to the state level. It is the responsibility of the state governments to ensure distribution of fertilizers as per local demand within the state.

The following steps have been taken for boosting the indigenous production. The Government has approved the New Pricing Scheme (NPS) Stage III on 1.02.2007 to be implemented with effect from 1.10.2006. Under the NPS III, the movement of urea will be monitored throughout the country by an on-line web based monitoring system. The subsidy on urea will be paid only when urea reaches the district. Further, the Department will operate a buffer stock through the State Institutional Agencies/fertilizer companies in major consuming states up to a limit of 5% of the seasonal requirement. The gap between requirement and indigenous availability of urea is met through imports.

As far as decontrolled Phosphatic and Potassic fertilizers are concerned, subsidy is released on sale of fertilizers. The responsibility of meeting the full requirement of decontrolled fertilizers in any state is with the concerned state governments. State governments have been advised to identify at least one State Institutional Agency, which would deal with the required quantities of decontrolled fertilizers. Buffer stocking of decontrolled fertilizers by the Government of India would be made only to meet any emergent requirement.

To ensure availability of urea in all parts of the country, the freight reimbursement to urea units will now be on actual rail and road leads.

This was stated by the Minister of State for Chemicals & Fertilizers and Parliamentary Affairs Shri B.K. Handique in a written reply in the Rajya Sabha today.

Source : Press Information Bureau

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