Cuts in fertilizer subsidy

As per the decision of the Cabinet Committee on Economic Affairs (CCEA) ,Govt. further revised the base rates of concessions for making ‘on account’ payment on the sale of phosphatic and potassic fertilizers., the base rate of concession for indigenously produced di-ammonium phosphate (DAP) would be reduced to Rs. 2800 as against Rs.3000 earlier. It stood at Rs. 4500/t before the presentation of the budget on February 29,2000.

There is, however, no change in base rate for imported DAP and remains at Rs.950/t (it stood at Rs. 3100/t before the budget), an official spokesperson said. In the case of mutate of potash (MOP) fertilizer, the base rate has been increased to Rs. 2800/t from Rs. 2695/t. before the presentation of the budget, the rates stood at Rs. 3250/t.

In the case of single super phosphate (SSP), the base rate has been reduced to Rs. 700 from Rs. 800/t. It ruled at Rs.900 before the budget presentation, the spokesperson said.


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