FERTILIZER PRICING POLICY in India

FERTILIZER PRICING POLICY


THE CURRENT FERTILIZER PRICING POLICY OF 2003-2004 PLUGS LOOPHOLES AS EXPLAINED BELOW:
We did not expect the budget to take a bold measure like trying to increase the farm gate price of urea just a couple of years before the general elections-Unlike all expectations from the budget which was more from the revised retention pricing norms for manufacturers, the finance minister proposed an increase of Rs 240 per tonne in the farm gate prices of urea and Rs 200/ tonne for DAP and MOP. Complex fertilizer prices are to be altered to suit to the proportion of the NP mixes. This measure has been proposed to fill the expected gap in the subsidy costs of naphtha and gas feedstock.
This is a much-needed measure but is not sure how the government will be able to overcome these implications on the social and political arenas.
As this is a subsidy element and is a part of the budget finances, no impact is expected on any of the manufacturers of fertilizers. Cons...