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Centre steps in to roll back fertilizer prices

-The Hindu

Move after meeting with manufacturers

A day after fertilizer producers announced a sharp 46% to 58.33% hike in prices citing higher raw material costs, the Central government intervened on Friday to ensure a rollback even though fertilizer prices are no longer regulated.

Minister of State for Chemicals and Fertilizers Mansukh Mandaviya said prices would remain unchanged for now, after a ‘high-level’ meeting was held with the major fertilizer companies.

Opposition parties had termed the “unprecedented” hikes an insult to farmers protesting against the new agricultural laws.

U.S. Awasthi, CEO of the country’s largest fertilizer producer, IFFCO, stressed that the hikes were necessitated by a global surge in raw material costs.

He added that it was not a government decision as fertiliser prices are decontrolled.

The Centre’s intervention marked the second major reversal on economic policy effected amidst the ongoing Assembly elections in West Bengal, following the recent decision to suspend rate cuts announced on small savings instruments for the April to June quarter.

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