Union Govt Stalls Price Hike Of Fertilizers, Directs Companies To Sell At Old Rates

Union Govt Stalls Price Hike Of Fertilizers, Directs Companies To Sell At Old RatesA farmer using fertilizer

India’s largest fertilizer seller Indian Farmers Fertilizer Cooperative (IFFCO) had recently mentioned in its internal communication that the nutrient costs would be hiked by 58 per cent. However, the central government has assured farmers that they will continue to obtain the nutrients at the earlier rates after holding high-level discussions with fertilizer makers.

“Fertilizer companies had raised prices of nutrients like DAP, MOP and NPK. Now the government has decided to stall the price rise after meeting with these companies. Farmers will continue to get these fertilisers at existing prices,” Union Minister of State for Chemicals and Fertilizers Mansukh Mandavia was quoted by The Economic Times.

IFFCO has clarified that they still have 11.26 lakh tonnes of complex fertilizers that they will sell at the older rates. “Materials with new rates are not for sale to anyone,” said the company’s managing director and chief executive US Awasthi.

Apparently, international prices have shown a massive surge in the lats five to six months and that is being attributed for the announced 58 per cent hike on non-urea fertilizers. In fact, the price of DAP has shot up by 35 per cent globally and it has risen in the range of 30-40 per cent for nutrients such as potash, muriate, sulphur, ammonia etc.

Farmers have already complained of high input costs owing to the prices of seeds, pesticides and diesel that has perhaps contributed to the government’s insistence on maintaining the status quo on this issue for the time being.