New Delhi, Apr 11 : The Economic Affairs Cabinet Committee today approved a revised policy for Single Super Phosphate (SSP) Fertilizer for the agricultural year, as per following terms:
(i) A uniform all-India maximum retail price of SSP, based on the nutrient cost of 'P' and 'S' will be fixed by the Government of India at Rs.3400 per MT for Powdered SSP. This will bring uniformity in pricing of all Phosphatic and Potassic (P and K) fertilizers and also allow sharing the cost of Sulphur by the farmer as a valuable secondary nutrient.
(ii) Cost of 'P' nutrient as derived from the MRP of Diammonium Phosphate (DAP) and Rs.73 per 'S' out of the cost of 'Sulphur' at present cost of US 553 dollars per MT will be adopted for fixing the MRP of SSP. Balance will be recognized as part of the concession. This will rationalize pricing of SSP and allow sharing of cost of 'S' between the farmer and the Government.
(iii) Department of Fertilizer will be authorised to revise MRP of SSP from time to time in future keeping in view the international price trend of Sulphur as well as nutrient price of 'P' in DAP. This will allow periodic adjustment in price of SSP vis-a-vis concession to SSP.
(iv) MRP of Granulated SSP will be announced at Rs.400 per MT higher than the MRP of powdered SSP and MRP of Boronated SSP at 10 per cent higher than that applicable to Powdered and Granulated SSP respectively. This will enable the farmer to obtain fortified SSP required for balanced fertilization and ensure agricultural productivity.
(v) Concession to SSP based on the CAB formula will be implemented with escalation / de-escalation in the prices of rock phosphate and sulphur will be carried out on a monthly basis. This will encourage SSP production by compensating the cost of raw materials which will result in increased use of 'P' through SSP and also increased availability of 'S' and 'Ca'.
(vi) The monthly Concession to SSP will be worked out on the basis of average of the low and the high prices for the preceding month published in the Fertilizer Market Bulletin or actual weighted average of imported Sulphur and imported Rock Phosphate arrived during the same period, except for April, whichever is lower for SSP manufactured with imported rock. For April, the same month price would be reckoned with. Average price of indigenous rock for the same period would be reckoned with for concession to SSP manufactured with indigenous rock.
(vii) Base Concession to SSP will be adopted and announced at Rs.5630 per MT for SSP with imported rock and at Rs.3658 per MT with SSP with indigenous rock for 2008-09. This concession will be applicable to powdered, boronated, granulated or any other fortified SSP. This will enable manufacturers to claim their Concessions.
(viii) All SSP will be marketed by large producers, manufacturing more than one lakh MT of SSP per annum or through urea manufacturers who are already covered under the Subsidy / Concession Scheme and who are having a wide marketing network in the country. This will ensure quality control on the SSP being made available to the farmer.
The marketer of SSP will claim concession / subsidy for such sales and full concession payable would be released on the basis of certification of arrival / receipt in the district by their statutory auditors as acknowledged by the States. This will bring uniformity in the payment procedure for all Phosphatic and Potassic (P and K) fertilizers under the Concession Scheme.