The government toady announced a hike in the prices pf urea, the top nitrogenous fertiliser consumed in the country, with effect from 1 April 2010. The government also announced a nutrient-based subsidy policy (NBS) on decontrolled phosphatic and potassic fertilisers during the financial year 2010-11.
Urea will continue to be under the current MRP regime. However, the maximum retail price of urea will go up from Rs4,830 per tonne to Rs5,310 per tonne with effect from 1 April 2010, an official release said.
The union cabinet today approved the implementation of the NBS policy for decontrolled phosphatic and potassic fertiliser, which will be effective from 1 April 2010.
Under the NBS policy, the government will fix the subsidy on the basis of the nutrients, namely, nitrogen, phosphorus, potash and sulphur (N-P-K-S) contents, for the year 2010-11. The government will also give an additional a per tonne subsidy for subsidised fertiliser carrying other secondary nutrients and micro nutrients in formulations approved under FCO 1985.
The finance minister, in his budget speech of 2009-10, had announced the government's intent to move towards NBS in fertilizer sector.
The NBS regime is intended to promote balanced fertilisation for increased agricultural productivity in the country through higher usage of secondary and micro nutrients, the release said.