Government approves freight policy for distribution of P&K fertilisers

NEW DELHI: The Centre on Wednesday approved a proposal for reimbursing freight for the distribution of de-controlled phosphatic and potassic (P&K) fertilisers under the Nutrient-Based Subsidy (NBS) policy for the period from 1.1.2011 to 31.03.2012 with effect from 1.4.2012.

The freight policy shall be applicable on all P&K fertilisers except Single Sulphur Phosphate. This will ensure movement of fertilisers to all parts of the country. This will also ensure equitable prices of P&K fertilisers across all the regions. P&K fertilisers were brought under the NBS policy as of April 1, 2010.

Between April 1, 2010 and December 12, 2010, freight reimbursements were made according to the NBS policy in which freight subsidy was restricted to the rail freight. The road freight was assumed to be part of the fixed subsidy and the retail prices.

“This had led companies to move decontrolled fertilisers to places linked with railways only. Farmers of remote areas were either deprived of the soil nutrients or had to pay more,” said a fertiliser ministry official.