Govt., brings non-urea fertilizers under price control, fixes profit margins
Govt., brings non-urea fertilizers under price control, fixes profit margins
Current Affairs Daily Articles & Editorials
La Excellence IAS Academy | January 30, 2024 | Economy
Syllabus: GS-III
Subject: Economy(E)
Context: The government has extended price control measures to non-urea fertilizers, unlike urea which has a fixed maximum retail price.
Synopsis:
- Non-urea fertilizers under the Nutrient-Based Subsidy (NBS) scheme were previously market-determined, but now the government has introduced “reasonable pricing”
- The guidelines impose indirect MRP controls by capping company profits based on their total cost of sales.
- This move extends detailed cost monitoring and price controls applicable to urea to other fertilizers, aiming to ensure fair pricing and prevent excessive profits.
| Scheme(prelims):
The Nutrient Based Subsidy (NBS) Scheme: · Initiated in 2010, it provides fixed annual subsidies on Phosphatic and Potassic (P&K) fertilizers, excluding Urea, based on their nutrient content. · Administered by the Department of Fertilizers. · The scheme ensures farmers have access to P&K fertilizers at controlled prices. · It guarantees farmers access to essential nutrients for their crops. |
Source: Indian Express
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