Capacity utilisation criteria for SSP Manufacturing Units scrapped

Posted on:12 Mar 2016 10:38:47
Capacity utilisation criteria for SSP Manufacturing Units scrapped
12 March 2016 Current Affairs: Union Cabinet on 11 March 2016 approved the proposal to remove the criteria of minimum capacity utilisation for Single Super Phosphate (SSP) units that are eligible for subsidy, under the Nutrient Based Subsidy (NBS) Scheme.The decision, which comes into effect immediately, will enable small units to avail the subsidy and resulting in availability of cheaper fertilizers for farmers.This new policy will put the SSP units on the same footing as other fertilisers, and they will be eligible for subsidy irrespective of quantity of SSP produced and sold for agriculture purposes. It will also help revive smaller SSP units and encourage new SSP units to come up.From 1 October 2009, it was mandatory for the SSP units to utilize minimum 50% of their recognised production capacity or to produce 40000 MT, whichever is less, per year to become eligible for subsidy. There was some capacity addition in the beginning, but the production and consumption of SSP in the country had become stagnant in the last four years.The decision would also encourage the evolution of a robust mixed fertilizer market with diversified micro-nutrients to promote balanced fertilization of the soil. This new policy would be uniformly applicable to all fertilizers and provide a level playing field.SSP is a phosphatic multi-nutrient fertilizer, which contains 16% phosphate, 11% sulphur, 16% calcium and some other essential micro-nutrients.Because of the simple production technique, it is one of the cheapest chemical fertiliser available. It is more suited for crops like oilseeds, pulses, horticulture, vegetables, sugarcane, and others.

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