Government set to slash subsidy on di-ammonium phosphate, muriate of potash for FY'13

The government is set to reduce further the subsidy on non-urea fertilisers like di-ammonium phosphate (DAP) and muriate of potash (MoP), in the wake of strengthening rupee and bearish global price. The pricing of phosphatic and potassium fertilisers like DAP and MoP was freed from the government control in April 2010, but the government continues to offer subsidy to keep prices down. Last month, the Inter-Ministerial Committee (IMC) had decided to reduce the subsidy on DAP and MoP to Rs 15,000 a tonne for the 2012-13 fiscal from the existing level of Rs 19,763 a tonne and Rs 16,054 a tonne, respectively.

Source: Economic Times