Decontrol delay in urea pricing

While providing immediate protection to the farmers, the ministry has kept its options open once the four-year exemption expires. It has suggested that future fertilizer pricing policy be formulated based on the experience gained during 2006-10.

In its proposal, the ministry also recommends that the entire output of urea be brought under Essential Commodities Act ECA as 8220;it would ensure equitable distribution of urea in all parts of the country8221;.

Urea is presently under partial distribution and movement control where 50 per cent of each plant8217;s output is allocated under ECA with the company free to sell the remainder to farmers anywhere else in the country at the maximum retail price. The MRP, it says, 8220;should be protected in view of the more intense consumption of urea in the marginal and small size classes as compared to the large and medium categories.8221;

The proposal, it said would 8220;promote the objective of greater efficiency is urea production and distribution8221;.