Fertiliser industry and FAI hail government's new urea policy

NEW DELHI: The fertiliser industry today hailed the new urea policy and decontrolling of movement of complex fertilisers, saying these decisions by the government will lay down a roadmap for further reforms.

"The new urea policy is a step in the right direction and at the same time it is challenging for the individual players to be more energy efficient," Fertiliser Association of India (FAI) Director General Satish Chander told PTI.

The government's decision to abolish supply plan for phosphoric and potassic (P&K) fertilisers is a step towards promoting ease of doing business in the country, he said.

"Now fertiliser companies can sell their products anywhere in the country. It will promote competition in the market," Chander added.

Echoing similar views, Cormandel International Chairman A Vellayan said, "There is a positive feeling in the industry on the government's move to abolish the supply plan for complex fertilisers as it will reduce the paper work and ultimately benefit farmers."

He also said that the the new urea policy is a positive step towards reforms in the fertiliser sector.

Yesterday, the government had approved the new urea policy aiming to increase domestic production by two million tonnes and reduce its subsidy bill by over Rs 4,800 crore annually, but decided not to raise retail prices.

The government had also decontrolled the movement of P&K fertilisers so that any company can sell any P&K fertiliser across the country.