Ensure availability of fertilizers, increase local production: House panel tells Centre

The Standing Committee of Parliament on Chemicals and Fertilizers, headed by senior Congress chief Shashi Tharoor, in its two stories tabled right here on Wednesday, has posed questions on the availability of fertilizers and a subsidy coverage. The panel has additionally questioned the excessive GST charge on elements of fertilizers.

The stories have additionally known as for ending the import dependency on fertilizers resembling urea, diammonium phosphate (DAP), muriate of potash (MOP), nitrogen, phosphorus, and potassium (NPK). The manufacturing of these fertilizers as much as November, 2022 was 281.83 lakh metric tonnes however the consumption was 401.46 LMT. “Thus, there was a deficit of 119.63 LMT for all types of fertilizers in the country, which is worrisome,” the panel stated.

The panel requested the Department of Fertilizers to establish the explanations for scarcity of fertilizers being reported in some of the States within the nation and guarantee availability of fertilizers in each State by taking corrective steps. The panel sought the overview of a nutrient-based subsidy (NBS) that covers fertilizers like P&Okay fertilizers. “Urea is left out of the scheme and hence it remains under price control whereas technically there is no price control in other fertilisers,” the panel stated, recommending the Centre to overview the current NBS coverage with the intention to take away the disincentives for farmers to make use of different fertilizers.

The committee famous that GST for fertilizers is at 5% and GST on uncooked supplies like sulphuric acid and ammonia are at 18%. “The committee failed to understand this anomaly,” the report added and requested the Centre to decrease the GST on uncooked supplies within the curiosity of fertilizer manufacturing corporations and farmers. It stated that pure gasoline might be introduced below the GST internet as there are cases of double levying of VAT on pure gasoline.

The panel additionally really helpful that the Centre introduce buy coverage reforms and enter into long run contracts for import of numerous varieties of fertilizers and uncooked supplies in order to offset the consequences of worldwide worth rise within the brief/medium time period. “Besides, it is imperative that the Department should be more realistic in projecting their demands of funds at Budget Estimates stage and get adequate funds to facilitate timely and optimum utilisation of funds,” it added.