Expedite urea decontrol: PMO to Fertiliser Ministry

NEW DELHI: Amid inter-ministerial differences over the decontrol of urea prices, the Prime Minister's Office ( PMO) has asked Fertiliser Ministry to expedite the proposed policy.

"The PMO has directed the Fertiliser Ministry to accelerate the urea decontrol policy," sources said.

On August 5, the Group of Ministers on Fertiliser, headed by Finance Minister Pranab Mukherjee, had referred the proposed urea decontrol policy to the Cabinet Committee on Economic Affairs (CCEA) for approval as there was strong opposition from various ministries.

In the GoM, it was agreed that views of all concerned ministries on the issue would be sent to the CCEA, which would take a final call, source said.

The direction from the PMO comes in the wake of delay on the part of the Fertiliser Ministry to move the Cabinet note.

According to sources, Fertiliser Minister M K Azhagiri has not yet cleared the note prepared by the Department of Fertilisers.

The minister is opposing the proposed policy contending that the decontrol of urea sector would lead to rise in prices of the important farm nutrient.

Before the GoM, Azhagiri had written to Prime Minister, opposing decontrol of urea. He had said the move should wait till amendment to the new investment policy for the sector is brought about.