Amid reports of impending rise in the potash prices in the wake of the govt’ decision last week to cut subsidies on potash, the largest producer of fertilizer in the country IFFCO has decided not to spike the prices for the farmers.
In a press communiqué, the farmers’ cooperative reiterated” IFFCO will not raise any prices for DAP& NPK Phosphatic Fertilisers even after the new revised & reduced subsidy rates by 20 percent for the current financial year.”
Dr U S Awasthi also clarified the matter in a couple of tweets. In one of them he said” #IFFCO will not raise any prices for #DAP #NPK #Phosphatic #Fertilisers. Step for benefit of farmers.”
In another tweet he reiterated his commitment saying “#IFFCO is always committed for the benefit of #farmers. It’s objective is to provide #fertilisers to farmers at affordable cost.”
Readers would note that the union Cabinet met last week to cut potash subsidies by 20 percent from a year earlier to 7,437 rupees ($114.49) a tonne for the 2017/18 fiscal year leading to speculation that companies and cooperatives dealing with potash will have no option but to raise the price.
The leading financial daily The Economic Times has meanwhile reported that Indian fertiliser companies will soon raise potash prices after the government cut in subsidies.
ET quotes IFFCO MD Dr U S Awasthi saying “India’s potash import requirements are likely to fall in the 2017/18 fiscal year due to significant stocks carried forward from the last year, Awasthi reportedly said to the financial daily.
Earlier in 2011, IFFCO refused to pass on the rising prices and took a hit, with its import of raw materials turning costlier by Rs 300 crore due to a weaker rupee. Again, in the fiscal 2012-13 when the government had brought down the quantum of subsidy on decontrolled fertilizers-phosphatic (P) and potassic (K) IFFCO had maintained the same prices for the farmers.