A committee set up by the government has suggested freeing the prices of urea and inclusion of the fertiliser in the new nutrient-based subsidy scheme to discourage its excessive use, stem soil degradation and reduce government subsidy. The panel, led by former agriculture secretary T Nanda Kumar, also recommended a “comparatively higher level” of subsidy for critical nutrients like sulphur, zinc and boron to make them affordable to farmers.   The nutrient-based subsidy...

The drought in greenfield investment projects in the fertiliser sector in India is finally set to end after over a decade. Existing and prospective investors in fertiliser manufacture are reportedly willing to invest over Rs 45,000 crore in the next few years, both in expansion of existing capacities and creation of new ones. The rising excess demand for fertiliser is driving this renewed spurt in investment activity. The increase in...

Global fertiliser prices have started to hot up once again, in anticipation of tight supplies in 2010-11 and some significant mergers and acquisitions, which could increase the import bill for India and also make key soil nutrients expensive. In just the latter half of July, prices of key phosphatic fertilisers, urea, DAP, phosphate and potash have shot up in a marked manner. Between July 16 and July 29, phosphate prices...

THE Centre could make changes to the new Nutrient-based Subsidy (NBS) for fertilisers, as part of a concerted move to prune its subsidy bill after global prices of fertiliser nosedived recently. Under the NBS, subsidies for nutrients are currently fixed for a whole year but could now be reviewed every six months to take into account changes, especially price drops, in import prices. The Union Cabinet, while approving the NBS...

The fertiliser sector in India has been through difficult times in recent years. Stagnant production, no fresh investment and poor financial health of the units were accompanied by high level of import, imbalanced use of nutrients and deteriorating soil health. Mounting subsidy bill posed a serious fiscal management problem to the government. Industry has been pursuing with the government for appropriate reforms to ensure health and growth for both the...