Concession on Decontrolled P&K fertilizers is payable only
on the quantities sold for agricultural purposes.
Of the Decontrolled fertilizers produced/imported in India has been
placed in the movement control under the Essential Commodities Act 1955(ECA).
However, subsidy is paid on urea and Decontrolled P&K fertilizers covered under the Concession Scheme
if sold to the manufacturers of mixture fertilizers registered under FCO.
As the consumer prices of both indigenous and imported fertilizers are fixed uniformly,
financial support is also given on imported urea and Decontrolled Phosphatic and Potassic fertilizers.
However, it is reported by the industry that the
prevailing normal trade margin in respect of some Decontrolled formulations is 20% for retailers and 10% for wholesalers.
This objective is achieved through fixation of statutorily backed uniform MRP for urea and
indicative MRP for fertilizers covered under the Concession Scheme on sale of Decontrolled P&K fertilizers.
With this objective, urea being the only controlled fertilizer,
is sold at statutory notified uniform sale price, and Decontrolled Phosphatic and Potassic fertilizes are sold at
indicative maximum retail prices(MRPs).
In addition to NBS, freight for the movement and distribution of the Decontrolled fertilizers by rail
and road is being provided to enable wider availability of fertilizers even in the remotest places in the country.
The problems faced by the manufactures in earning a reasonable return on their investment with reference to controlled prices, are
mitigated by providing support under the New Pricing Scheme for Urea units and the concession Scheme for Decontrolled Phosphatic and Potassic fertilizers.