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Press Information Bureau
Government of India
Cabinet Committee on Economic Affairs (CCEA)
04-July-2012 14:23 IST
Policy for reimbursement of freight for distribution of Phosphatic & Potassic (P&K) fertilizers under Nutrient Based Subsidy
The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for reimbursement of freight for distribution of Phosphatic & Potassic (P&K) fertilizers under Nutrient Based Subsidy (NBS) Policy for (i) the period from 1.1.2011 to 31.03.2012 and (ii) with effect from 1.4.2012 onwards.

The freight policy shall be applicable on all P&K fertilizers except SSP. This will ensure movement of fertilizers to all parts of the country including areas having difficult topography. This will also ensure equitable prices of P&K fertilizers across all regions. All farmers in the country will be the beneficiaries.

Background:

The Nutrient Based Subsidy Policy is being implemented on P&K fertilizers w.e.f. 1.4.2010. Prior to this, Uniform Freight Policy was applicable on P&K fertilizers in line with Urea which was discounted after implementation of NBS Policy. During 1.4.2010 to 31.12.2010, Freight reimbursement was made as per the NBS Policy. In order to rationalize the freight reimbursement a separate freight policy for P&K fertilizers has been approved w.e.f. 1.1.2011.

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