Some of the top fertilizer companies have increased the prices of phosphatic and potash nutrients. The reason cited by them is the higher prices of imported raw materials. Companies like India Potash Ltd., IFFCO, and Paradeep Phosphates Ltd. have declared a hike in prices.
On April 8, 2021, IFFCO declared 58.33% hike in the prices of DAP, upto Rs. 1900 per kg bag. The company has declared a 60% increase in price of phosphatic fertilizers of various grades, upto Rs. 1350 to Rs. 1800 per 50 kg bag.
At the same time, IFFCO announced that it will provide 11.26 lakh tonnes of complex fertilizer at previous rates.
The Managing Director & CEO of IFFCO, US Awasthi, said, “We will ensure there is enough material in the market at old rates and I have instructed the IFFCO marketing team to sell only previously packed material with old rates to farmers. We always take decision by keeping farmer first approach.”
Farmers’ reaction to the price hike
The hike in prices would lead to higher cost of input for farmers. Their second highest expenditure is fertilizer. First is diesel. However, fingers are crossed over the Center’s move to cover the price rise in fertilizer subsidies to growers. The Center is anticipated to declare a nutrient-based subsidy for this fiscal before the starting of the Kharif season.
Bhartiya Kisan Sangh (BKS), which is a farmer body, has opposed the price hike, as it would lead to an increase in input cost for farmers. The rising fuel prices will compound the problem of high cost of production. This can hinder the achievement of the objective of doubling farmers’ incomes.
