Indian-Fertilizer-Scenario - Department of Fertilizers

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department of fertilizers ministry of chemicals & fertilizers 103 8. notiFiCAtion on ModiFiCAtion in CeRtAin eLeMents oF tHe ConCession sCHeMe on deContRoLLed PHosPHAtiC & PoTaSSiC (P & K) FerTiliZerS to No. 22011/4/2009-MPR Government of India Ministry of Chemicals & Fertilizers Department of Fertilizers 1. Chief Secretaries/all agriculture Production Commissioners/Secretaries (agriculture) 2. Directors, Directorate of agriculture of the State Governments/U.Ts. Shastri bhawan, New Delhi, The 7 th July 2009 Subject: Modification in certain elements of the Concession Scheme on decontrolled Phosphatic & Potassic (P&K) fertilizers with effect from 1 st april 2009 – regarding, Madam/sir, In continuation of this Department letter No. 5-1/2007-Shipping II-MPR dated 11th July 2008 conveying continuation of the Concession Scheme on decontrolled Phosphatic & Potassic (P&K) fertilizers with effect from 1st april 2008, I am directed to convey that the Government has approved modifications in certain elements of the Concession Scheme with effect from 1st april 2009. accordingly, the policy for Concession Scheme for P&K fertilizers (except SSP) w.e.f 1st april 2009 will be as follows: 2) The Maximum Retail Prices (MRPs) of decontrolled P & K fertilizers covered under the Concession Scheme will be as per the details given below: Products MRP w.e.f. 18th June 2008 DaP 9350 MaP 9350 MoP 4455 tsP 7460 16:20:00:13 5875 20:20:0:13 6295 20:20:00:00 5343 23:23:00:00 6145 28:28:00:00 7481 10:26:26:00 7197 12:32:16:00 7637 14:28:14:00 7050 14:35:14:00 8185 15:15:15:00 5121 17:17:17:00 5804 19:19:19:00 6487 ammonium Sulphate 10350 (Rs. per Mt)
104 indian fertilizer scenario 2010 3) Final concession rates will be worked out on monthly basis w.e.f 1 st april 2009 taking into account prices adopted as detailed below. 4) Monthly concession for imported Di-ammonium Phosphate (DaP) will be based on the average of low and high prices of DaP published in Fertilizer Market bulletin (FMb) and Fertecon from US Gulf fob, plus Tampa- Mundra/India West Coast freight for the month preceding the last month or the actual weighted average of the landed price for the current month, whichever is lower. 5) Monthly concession for indigenous DaP will be same as that given to imported DaP. 6) Monthly concession for indigenous and imported TSP will be based on the average of low and high fob prices of TSP published in the FMb plus freight for the month preceding the last month or the actual weighted average of the landed price for the current month, whichever is lower. 7) Monthly concession for imported MOP and imported and indigenously granulated MaP will be based on average of the low and the high C&F prices of the month preceding the last month published in the Fertilizer Market bulletin (FMb) – FSU fob plus baltic freight for MOP and baltic fob plus baltic freight for MaP or the actual weighted average of the landed prices of the current month, whichever is lower. 8) Per unit price of ‘P’ for monthly concession for complex fertilizers will be derived from the delivered cost of DaP and imported ammonia under the Concession Scheme. 9) Per unit price of ‘N’ for monthly concession for complex fertilizers will be based on Group-wise cost of ‘N’ (based on usage of feed stock, namely gas, naphtha, imported urea/ammonia and imported ammonia), as adopted by the Government based on the recommendation of the Tariff Commission. 10) Per unit price of ‘K’ for monthly concession for complex fertilizers will be based on the C&F cash price of MOP, as recognized for the concession scheme for MOP. 11) Per unit cost of ‘S’ for sulphur containing complex fertilizers will be recognized based on the price of imported sulphur. 12) Group-wise ‘Other costs’ as adopted by the Government based on the recommendation of the Tariff Commission will be recognized for monthly concession for complex fertilizers. For IFFCO Paradeep, ‘Other Cost’ will also include separate cost of investment/revamping, as adopted by the Government based on the calculation of the Tariff Commission. 13) Freight will be reimbursed as per the Uniform Freight Subsidy on actual basis. 14) Concession payable for MaP (11-52-00) and TSP (0-46-0) will be capped to that payable for DaP. Further, import of MaP and TSP on Government account, if so decided, would be within the overall ceiling for imported DaP in a year as decided from time to time to the extent of shortfall in availability of DaP. 15) The average of the low and the high C&F prices of ammonia (cfr India), Sulphur (cfr India) and Prilled Urea (arabian Gulf fob) for the preceding month published in the Fertilizer Market bulletin (FMb) or actual weighted average landed price for the current month purchased by the P&K manufacturers/importers, whichever is lower, will be adopted for monthly concession for complex fertilizers. Price of naphtha purchased by the Fertilizers & Chemicals Travancore limited (FaCT) during the current month will be adopted for working out the cost of ‘N’ for naphtha based Complex fertilizers. Price of natural gas (aPM) as per the current month will be adopted for working out the cost of ‘N’ for gas based Complex fertilizers. 16) The input/fertilizer prices for the Concession Scheme will be derived on the basis of an ‘outlier’ methodology. accordingly, the weighted C&F price of various raw-materials/intermediates/finished fertilizers (landed at Indian ports in the relevant month) for computation of monthly concession will be adopted by excluding the outlier(s). Prices, which are less than 5% or US $ 30 per MT of the ‘industry average’, whichever is lower, will be excluded while computing the ‘industry average’. The ‘outlier’ will be provided a separate treatment whereby the difference between ‘outlier’ price and the ‘industry average’ will be shared in the ratio of 65:35 between the ‘outlier’ and the Government respectively. The ‘outlier’ methodology will also be applicable to all long-term contracts including all existing long-term contracts such as ammonia Off-Take agreement (aOTa) of IFFCO with OMIFCO w.e.f 1 st april 2008. 17) Monthly weighted average landed prices of finished fertilizers and fertilizer inputs are computed by the Department based on the documents provided by the importers such as bill of lading and bill of entry including customs paid on quantity and value of the imports. Importers are required to disclose net quantity and value, net of any off-invoice transactions. 18) Updation in the factor of escalation/de-escalation in the nutrient price for complex fertilizers w.e.f 1 st april 2009 will be carried out in consultation with the Department of expenditure, Ministry of Finance after the
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Indian-Fertilizer-Scenario - Department of Fertilizers

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