Cost Analysis Report Sparks Fertiliser Pricing Debate

A report from the Chief Advisor (Cost) in the Ministry of Finance is being reviewed to potentially reinstate a minimum fixed cost for certain PSUs and cooperative urea units. The issue, related to the Modified New Pricing Scheme-III, is currently under examination following recommendations from the Expenditure Finance Committee.

The Ministry of Finance's Chief Advisor (Cost) has submitted a crucial report now under scrutiny, potentially affecting the pricing strategy for certain urea sectors. The examination seeks to reinstate a minimum cost of Rs 2,300 per metric tonne for public sector undertakings and cooperative units.

Minister of State for Fertilisers, Anupriya Patel, revealed to Parliament that the Department of Fertilisers has engaged the Department of Expenditure. This initiative follows recommendations made by the Expenditure Finance Committee (EFC) to consider costing issues under the Modified New Pricing Scheme-III.

The reinstatement would apply retrospectively from April 2014. The department is determining the feasibility and implications of the proposed pricing framework, with the analysis by the Chief Advisor playing a pivotal role in the decision-making process.

(With inputs from agencies.)