Govt Hikes Natural Gas Supply To Fertiliser Units As Gulf Situation Eases

(MENAFN- IANS) New Delhi, April 8 (IANS) The government announced on Wednesday that, based on available inventory and scheduled LNG cargo arrivals, the overall gas allocation to fertiliser plants is being further enhanced by 5 per cent to reach approximately 95 per cent of their six-month average consumption, with effect from April 9.

The announcement comes in the wake of the ceasefire between the US and Israel, which is expected to open up the Strait of Hormuz for ships stranded in the Persian Gulf to sail through with their oil and gas cargoes.

All Indian seafarers in the Gulf region are safe, and no incident involving Indian-flagged vessels has been reported in the past 24 hours. The Directorate General of Shipping, in coordination with ship owners, recruiting agencies and Indian Missions, continues to closely monitor the situation, according to a statement issued by the Ministry of Shipping and Ports

The hike in natural gas supply to fertiliser units also comes on a day the Union Cabinet approved a proposal of the Department of Fertilisers for fixing the Nutrient Based Subsidy (NBS) rates for this year's kharif season (from April 1 to September 30) on Phosphatic and Potassic (P&K) fertilisers. The tentative budgetary requirement for the kharif season this year will be approximately Rs 41,533.81 crore. This is approximately Rs 4,317 crore more than the budgetary requirement for the Kharif season, which worked out to Rs 37,216.15 crore, according to an official statement.

The approval will ensure the availability of fertilisers to farmers at subsidised, affordable and reasonable prices. The rationalisation of subsidy on P&K fertilisers is being done in view of recent trends in the international prices of fertilisers and inputs.

The subsidy would be provided to the fertiliser companies as per approved and notified rates so that fertilisers are made available to farmers at affordable prices.

The government is making available 28 grades of P&K fertilisers, including DAP, to farmers at subsidised prices through fertiliser manufacturers and importers. The subsidy on P&K fertilisers is governed by the NBS Scheme with effect from April 1, 2010. In accordance with its farmer-friendly approach, the government is committed to ensuring the availability of P&K fertilisers to farmers at affordable prices, according to the statement.

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