Need for subsidy Or increase in MRP of DAP as global prices rise: FAI
DAP) have risen in the last few months and there is a need to increase either the government subsidy or retail prices if the rates remain high in the international market, said N Suresh Krishnan, chairman, Fertilizer Association of India (FAI).
The DAP at Rs 1,350 per bag of 50 kilograms, at present, however, the international prices are elevated to $ 595 per tonne from $ 440 per tonne in July this year.
''At this point in time with the current import price, viability will be a bit of a challenge in the case of DAP. We may need either higher MRP or higher support from the government if the global prices maintain at the current level,'' Krishnan said.
The association also demanded that urea, a key crop nutrient, should be brought under the Nutrient-based Subsidy (NBS) scheme on the lines of P&K fertilisers.
This will help in correcting considerable disparities in MRPs (maximum retail prices) of urea and P&K fertilisers, it argues.
Urea production is expected to rise to 30 million tonnes this fiscal from 28.5 million tonnes in the previous year.
The country is expected to become self-sufficient in the next couple of years in terms of urea production with a rise in domestic production.
