Findings and recommendations of the Standing Committee on Chemicals and Fertilizers
The Standing Committee of Parliament on Chemicals and Fertilizers, has posed questions on the availability of fertilizers and a subsidy policy.
The reports have also called for ending the import dependence on fertilizers such as
Urea, diammonium phosphate (DAP), muriate of potash (MOP), and nitrogen, phosphorus, and potassium (NPK).
The production of these fertilizers up to November 2022 was 281.83 lakh tonnes but the consumption was 401.46 lt.
Thus, there was a deficit of 119.63 lt for all types of fertilizers in the country, which is worrisome.
The panel asked the Department of Fertilizers to ascertain the reasons for a shortage of fertilizers being reported in some of the States and ensure availability of fertilizers in every State by taking corrective steps.
The panel sought the review of a nutrient-based subsidy (NBS) that covers fertilizers such as P&K fertilizers.
Urea is left out of the scheme and hence it remains under price control whereas technically there is no price control in other fertilisers.
Recommending the Centre to review the present NBS policy to remove the disincentives for farmers to use other fertilizers.
The committee noted that GST for fertilizers is at 5% and GST on raw materials such as sulphuric acid and ammonia are at 18%.
COMMENTS