In order to push major policy reforms in the fertilizer sector especially in the Single Super Phosphate (SSP) units, the Union Cabinet chaired by the Prime Minister Narendra Modi Thursday approved the proposal for removing the minimum capacity utilization criteria such units thereby making them eligible for the subsidy under the Nutrient Based Subsidy (NBS) Scheme.
“This is in continuation of other policy reforms made recently which include New Urea Policy, 2015 and Gas Pooling for urea production. Due to the emphasis on promoting energy efficiency and rationalisation of gas pricing mechanism, highest ever urea production in the period so far has been achieved this year. It is expected that there will be an additional production of 17 lakh MT of urea this year as compared to last year. Moreover, to prevent diversion to non-agricultural use and to enhance productivity, 100% of urea is now neem coated”, read a PIB release.
Further, policy on promotion of City Compost is a major initiative which aims at the twin objectives of making cities cleaner and utilizing the city garbage as compost for improving soil health. Under this policy, for the first time market development assistance of Rs.1500 per MT will be provided to scale up production and consumption of the product, it said.
SSP is a phosphatic multi-nutrient fertilizer, which contains 16% phosphate, 11% sulphur, 16% calcium and some other essential micro-nutrients. Because of the simple production technique, it is one of the cheapest chemical fertilizer available. But for the last four years the production and consumption of SSP in the country has remained more or less stagnant.
This new policy to remove the minimum capacity utilization criterion would put the SSP units on the same footing as other fertilizers and they would be eligible for subsidy irrespective of quantity of SSP produced and sold for agriculture purposes, the Cabinet decided.
This would also encourage the evolution of a robust mixed fertilizer market with diversified micro-nutrients to promote balanced fertilization of the soil. This new policy would be uniformly applicable to all fertilizers and provide a level playing field, the release concluded.
