Government asks fertiliser companies to sell complex fertilisers at old rates

On Friday, the Centre advised fertiliser firms not to raise the gross retail price (MRP) of non-urea fertilisers such as DAP and to sell at current prices. Following a rise in domestic retail prices of non-urea soil nutrients in line with the global market, a directive was given to fertiliser firms at a high-level meeting on Thursday.

Non-urea fertilisers such as di-ammonium phosphate (DAP), muriate of potash (MoP), and NPK have no price controls and are set by suppliers, although the Centre provides them with annual fixed subsidies. "The Indian government convened a high-level meeting and ordered fertiliser companies not to raise the price of DAP, MoP, and NPK, and fertiliser companies agreed," Mansukh Mandaviya, Minister of State for Chemicals and Fertilisers, told PTI.

The fertiliser firms have been told that they would market the sophisticated fertilisers at their old prices. "Farmers will continue to receive DAP, MoP, and NPK nutrients at the same levels as before," he added. "Giving preference to the interests of the agricultural community, there would be no rise in fertiliser rates," the minister tweeted separately.

Domestic fertiliser firms and cooperatives have increased the market prices of DAP and other complex fertilisers in response to the steep rise in global raw material prices. KRIBHCO, MCFL, Zuari Agro Chemicals, and Paradeep Phosphates, for example, have raised DAP retail prices to Rs 1,700 per bag as of April 1.

DAP prices have also been raised by Chambal Fertiliser and Chemicals Ltd (CFCL) to Rs 1,600 per bag, and Indoram India Pvt Ltd to Rs 1,495 per bag from Rs 1,200 per bag. However, IFFCO, the fertiliser cooperative that has printed a new rate of Rs 1,700 per bag on the fresh stock of DAP, clarified on Thursday that it was a provisional price and not intended for sale to farmers.

The cooperative will sell the old stock of 11.26 lakh tonne of complex fertiliser at the old cost of Rs 1,200 per container, according to an IFFCO spokesperson.