Govt., brings non-urea fertilizers under price control, fixes profit margins

Syllabus: GS-III

Subject: Economy(E)

Context: The government has extended price control measures to non-urea fertilizers, unlike urea which has a fixed maximum retail price.


  • Non-urea fertilizers under the Nutrient-Based Subsidy (NBS) scheme were previously market-determined, but now the government has introduced “reasonable pricing”
  • The guidelines impose indirect MRP controls by capping company profits based on their total cost of sales.
  • This move extends detailed cost monitoring and price controls applicable to urea to other fertilizers, aiming to ensure fair pricing and prevent excessive profits.

The Nutrient Based Subsidy (NBS) Scheme:

·         Initiated in 2010, it provides fixed annual subsidies on Phosphatic and Potassic (P&K) fertilizers,             excluding Urea, based on their nutrient content.

·         Administered by the Department of Fertilizers.

·         The scheme ensures farmers have access to P&K fertilizers at controlled prices.

·         It guarantees farmers access to essential nutrients for their crops.

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