CCEA approves reimbursement of freight for distribution of P&K fertilizers

The Department of Fertilizers’ proposal for reimbursement of freight for distribution of Phosphatic & Potassic (P&K) fertilizers under Nutrient Based Subsidy (NBS) Policy has been approved by the Cabinet Committee on Economic Affairs (CCEA). The proposal for reimbursement is for the period from January 01, 2011 to March 31, 2012 with effect from April 01, 2012 onwards.

Excluding Single Super Phosphate (SSP), the above freight policy shall be applicable on all P&K fertilizers. This step by CCEA will make fertilizers available to all parts of the country including areas having difficult topography which in turn will be beneficial to all the farmers in the country. Besides, this will also ensure equitable prices of P&K fertilizers across all regions.

The Nutrient Based Subsidy Policy is being implemented on P&K fertilizers with effect from April 01, 2010. As per the NBS Policy, Freight reimbursement was made during April 01, 2010 to December 31, 2010. In order to rationalize the freight reimbursement a separate freight policy for P&K fertilizers has been approved with effect from January 01, 2011.