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| Urea Price |
"The GoM will discuss on decontrolling of urea prices by the side of a first acquaintance on January 5," a senior government representative told PTI.
With the introduction of the nutrient-based subsidy (NBS) scheme with the aim of came into effect from April 2010, the government had freed the potassic and phosphetic fertilisers. However, it retains control on the charge and movement of urea, which constitutes around partly of India's fertiliser consumption.
At Rs 5,310 apiece tonne, urea is the the cheapest to be had fertiliser between others. Ministry sources thought with the aim of government is likely to increase in intensity the charge by 2-5 apiece cent apiece tonne to provide selected relief to the manufacturers and offset the indiscriminate wear out of the fertiliser.
Meanwhile, sources in the Ministry thought with the aim of though the GoM would discuss the urea decontrol circulation, it might refrain from taking some material steps allowing for its adverse impacts on the farmers.
Moreover, sources thought, the government would like to take a calibrated verge on allowing for the impending meeting elections in West Bengal and Tamil Nadu.
The fertiliser industry has been vital the government to decontrol the urea sector aphorism with the aim of the gauge would egg on entrepreneurs to invest in the sector.
The Fertiliser Department, however, fears with the aim of decontrol would not be average in place of all manufacturing units in the existing heterogeneous urea industry someplace production cost differs from single piece to the other.
The cost of urea production depends leading place vintage, feedstock and the level of energy consumption.
The Fertiliser Department like so favours an broadening of the existing New Pricing Scheme (NPS)-III in place of urea with selected modifications, which include fixing a charge group and allowing domestic industry and importers to retail the fertiliser inside with the aim of group.
India's urea output is around 21 million tonnes, while the demand is 26 million tonnes. The gap is met through imports.