Policy to encourage production of fortified coated fertilisers

New Delhi, May 1 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today permitted fertiliser manufacturers to effect price hikes in view of additional costs involved in coating, fortification of fertilisers with secondary or micro nutrients.

"The approval will help in increasing higher productivity and ensure availability of non-fortified or coated fertilisers also providing the farmers with a wider choice," Finance Minister P Chidambaram told reporters here after the meeting of the CCEA.

Manufacturers have been allowed to charge up to 5 per cent over and above the notified selling prices for all the FCO approved fortified or coated subsidised fertilisers except for Zincated Urea Boronated SSP.

For Zincated Urea and Boronated SSP, the manufacturers will be allowed to sell up to 10 per cent above the MRP of the subsidised fertiliser.

They would be allowed to produce fortified or coated fertilisers up to a maximum of 20 per cent of their total production if respective subsidised fertilisers.

The percentage would be reviewed by the Departments of Fertilisers and Agriculture and Cooperation from time to time taking into account the demand and availabiity of such fertilisers in the country.

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