Published On: Tue, Mar 29th, 2022

Subsidy on fertilizers increased despite global price rise: Mandaviya

New Delhi: Union Minister for Chemical and Fertilizer Mansukh Mandaviya on Tuesday said that the government has increased the subsidy components in the fertilizer sector despite global price rise from time to time so that farmers do not get the burden.

The Minister also said that not only in Urea, but the price of DAP has also gone up globally

The Minister also said that not only in Urea, but the price of DAP has also gone up globally as it costs over $1300 per MT in the international market and it would have cost Rs 4,000 per bag in the market but the government has given subsidy on this and it is being sold at Rs 1,350 per bag to the farmers.

He also said that as of now the government gives subsidy of Rs 2,550 on the fertilizer and will keep on subsidizing it so that the farmers do not get the burden of the price hike.

Earlier, in a written reply to the question of BJD MP Sasmit Patra who wanted to know that when the Talchar Fertilizer Limited (TFL) will be commissioned, the Minister stated in the Rajya Sabha that the government is committed for early revival of Talcher unit of Fertilizer Corporation of India Ltd (FCIL) in Odisha through formation of a Joint Venture company of nominated Public Sector Undertakings (PSUs) — Rashtriya Chemicals & Fertilizers Limited (RCF), Gas Authority of India Limited (GAIL), Coal India Limited (CIL) and FCIL.

Accordingly, a Joint Venture Company named Talcher Fertilizers Ltd (TFL) was incorporated on November 11, 2015 for setting up an Ammonia urea plant of 12.7 LMT per annum capacity based on Coal Gasification Technology. The overall progress achieved till February, 2022 is 20.84 per cent while the plant is expected to be commissioned by September, 2024.

Mandaviya also said that the commissioning of TFL was scheduled in September, 2023. However, the project is delayed for at least 12 months primarily due to Covid-19 pandemic. The Lump Sum Turn Key (LSTK) global contract for Coal Gasification and Ammonia urea package were awarded in September, 2019.

“But due to the Covid pandemic and nationwide lockdown on March 23, 2020, all project activities of TFL came to a standstill and after the second and the third wave of Covid-19 in December 2021 also further impacted progress of this project adversely,” Mandaviya said.

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