Fertilisers movement, availability being reviewed: Paswan

New Delhi, June 8 (UNI) The Government has decided to pay subsidy to the fertiliser manufacturers/suppliers with effect from April 1 this year, only on the basis of actual receipt of fertilisers in the states.

In respect of urea, fertiliser companies will be provided actual cost of transportation of fertilisers by way of primary freight up to the primary stock point and secondary freight for movement beyond the primary stock point.

With carryover liability of Rs 8,082 crore, the subsidy bill for 2007-08 as estimated by the Department of Fertilisers (DoF) is at Rs 50,284.08 crore as against the Budgetary allocation is Rs 22,451 crore. The shortfall in the budgetary provision has been apprised to the Ministry of Finance, said Chemicals and Fertilisers Minister Ram Vilas Paswan while reviewing the supply of fertilisers in the country.

The DoF has also authorised creation of buffer stocks of urea in each of the major agricultural states to be operated by the lead fertiliser company. The buffer stock in respect of urea has been authorised to the extent of five per cent of the seasonal demand.

For the current season, the authorised buffer to be operated is 6.5 lakh tonnes of urea. The DoF also proposes to maintain a buffer in respect of DAP (2 lt) and MOP (1 lt) to meet any exigent situations.

The pre-positioning of stocks is being undertaken to obviate any shortages at the local level during the season. It is proposed to pre-position stocks at the level of 75 per cent of the monthly requirement by the 1st of the month and 100 per cent of the requirement by the 15th of each month.

The requirement of fertilisers during the current Kharif season as assessed by the DAC is 131.65 lt of urea, 40.08 lt of DAP and 16.52 lt of MOP, as against the assessed requirement during the last Kharif season of 122.37 lt of urea, 33.10 lt of DAP and 14.66 lt of MOP.

This year's demand represents an increase of 7.5 per cent in respect of urea, 21 per cent in respect of DAP and 13 per cent in respect of MOP over the corresponding period last year. The availability of fertilisers during the first two months of the season has been satisfactory.

To streamline the availability of fertilisers to the farmers, DoF has initiated Web-based Monitoring System (FMS)to track the dispatch, receipt and sale of fertilisers as per the approved plans in each district in the country.

The Supply Plans has already been prepared by the state governments concerned in consultation with the lead fertiliser company and other major fertiliser suppliers to the state which require each fertiliser company to identify upto three Primary Stock Points (PSP's) in each district for marketing fertilisers. The details of such identified PSP's have already been entered into the FMS. Receipt and sales of fertilizers in each district will be monitored through these PSP's.

UNI