No increase in P&K fertiliser prices for now; govt keeping close eye on global rates: Gowda

Fertiliser Minister D V Sadananda Gowda on Tuesday said there will not be any increase in retail prices of phosphatic and potassic PK fertilizer for the time being and the government is keeping a close watch on global prices. Briefing the media, Gowda said the issue was discussed in a meeting with domestic fertilizer companies on Monday and they have agreed to sell the stock at old rates. Practically, there won't is any increase in the present rates of PK fertilizers.

Fertiliser Minister D V Sadananda Gowda on Tuesday said there will not be any increase in retail prices of phosphatic and potassic (P&K) fertilizer for the time being and the government is keeping a close watch on global prices.

Briefing the media, Gowda said the issue was discussed in a meeting with domestic fertilizer companies on Monday and they have agreed to sell the stock at old rates.

''Practically, there won't be any increase in present rates of P&K fertilizers. I discussed this with top manufacturers yesterday. We asked them not to increase the prices at this stage and they agreed,'' Gowda told reporters.

Already, some companies, including IFFCO and IPL Ltd, have written to state governments to ensure that fertilizers are sold at old rates, he said.

Stating that there is sufficient stock of fertilizers for nearly two to two-and-half months, the minister said once this stock gets exhausted, a call will be taken on further action. ''We are having a close watch on the international market, we will look into the matter. There is no problem for the next two months. We have got sufficient stocks at present. After one month, we will review the situation,'' he said.

The minister said the global prices of fertilizers are rising due to competing demands from major consuming markets.

''However, we are apprehending that international prices will come down soon because the cropping season in the US and Brazil is over, while it will end in the EU this month. Ultimately, India and China are two markets left for sellers,'' he noted.

Already urea prices have come down by USD 40 to USD 340 from USD 380 per tonne, he said.

Asked if partial lockdown in some states will affect the movement of fertilizers, the minister said, ''When there was full lockdown last year, we supplied about 17 percent more area and 40 percent higher P&K fertilizers. We have got all the mechanisms.'' Later, the minister tweeted that for the Kharif sowing season that will start from June onwards, the government is making efforts to ensure timely availability of fertilizer. ''Government (is) taking all necessary measures. Like previous years, fertilizer availability to remain comfortable during the Kharif season. We are keeping a close watch on the international market,'' he tweeted.

He said strict action will be taken against those involved in malpractices such as overcharging, black marketing, and hoarding of fertilizers. It may be noted that fertilizer companies had raised the retail prices of P&K fertilizers like Di-ammonium Phosphate (DAP) in line with the global market effective from April 1. But they were directed not to increase for the time being. Unlike urea, P&K fertilizers are decontrolled products. The prices are fixed by the manufacturers and the government gives them fixed subsidies each year.