Tamil Nadu CM urges Prime Minister to restore MRP-based fertiliser subsidy scheme

CHENNAI: State Chief Minister J Jayalalithaa has requested the Prime Minister Dr Manmohan Singh to discard the Centre’s Nutrient Based Subsidy Scheme (NBS) and restore the MRP-based fertiliser subsidy scheme.

“Introduction of the Nutrient Based Subsidy Scheme (NBS) by the Government of India from April 1, 2010, coupled with an unreliable supply of fertilisers to the State is indeed threatening to deprive our farmers of their basic means of sustenance and livelihood,” she said in a letter to Dr Singh.

Under the NBS policy, the manufacturers and importers of chemical fertilisers are liberalised to fix the Maximum Retail Price (MRP) based on the cost of production or import and this practice is impacting the profits of the farmers as these fertiliser companies have been voluntary hiking the retail price of fertilisers.

Accordingly, the prices of various fertilisers had increased between 247 per cent and 262 per cent during this time, the minister highlighted.

The Department of Fertilisers had also scaled down the subsidy for the current fiscal (2012-13) for DAP to Rs 14,350 per MT from Rs 19,763 fixed last year, and for MOP to Rs 14,400 per MT against Rs 16,054 last year.