In good news for the chemical and fertilisers sectors, the demand for major fertilisers in the country is on the rise and was the highest during 2010-11.

According to a recent report, the availability of fertilisers during the year has been satisfactory throughout the country.

?During 2010-11, approximately Rs. 65,000 crore was paid as subsidy to fertiliser companies to make subsidised fertilisers available to farmers at affordable prices,? it said.

The report further stated that 22 grades of phosphatic and potassic fertilisers, 15 grades of NPK complex fertilisers, Mono Ammonium Phosphate (MAP), Triple Super Phosphate (TSP), Ammonium Sulphate (AS) and Single Super Phosphate (SSP) were provided to the farmers at subsidised prices.

Besides, subsidy is being provided for freight on the transportation of fertilisers up to the retail level. Subsidy is also given on fertilisers fortified with secondary and micro nutrients.

A nutrient based subsidy policy for the fertiliser sector was approved by the government that became effective from April 1, 2010. This was aimed at leading to an increase in agricultural productivity and better returns for farmers and overtime reduce the volatility in demand for fertiliser subsidy and contain the subsidy bill.

The requirement of fertiliser subsidy for the past few years has risen sharply, partially due to increase in consumption of fertilisers and mainly due to sharp increase in price of fertiliser inputs and finished fertilisers leading to increase in normative delivered cost of subsidised fertilisers at farm gate level.