The government has set up an inter-ministerial committee to assess the price trend of fertilisers, its intermediates as also raw materials in the international market and suggest changes needed in the domestic fertiliser prices.
The prices of fertilisers had registered minor reductions in the international market in April-July 2010. However, despite minor reduction, prices of fertilisers in the international market are still comparable or are above the prices adopted under the nutrient-based subsidy (NBS) for 2010-11.
Any marginal decrease in prices has also been offset by the adverse rupee-dollar exchange rate, minister of state for chemicals and fertilisers Srikant Kumar Jena informed the Rajya Sabha in a written reply.
Under the nutrient-based subsidy policy, the government provides price subsidy for nitogenous, phosphoric, potassic and sulfuric (N, P, K & S) fertilisers covered by the NBS before the start of the financial year.
The new nutrient-based subsidy policy was introduced on 1 April 2010 for decontrolled phosphatic and potassic (P&K) fertilisers and from 1 May 2010 for single super phosphate.
The government had also announced the subsidy for indigenous and imported P&K fertilisers on an annual basis for the current financial year (2010-11) based on the prevailing international prices and price trends of fertilisers.