To ensure adequate supply of fertilisers during the peak season, the government is planning to create a buffer stock of key farm nutrients di-ammonium phosphate (DAP), muriate of potash (MoP) and urea.
“We operated buffer stock till 2010. Unfortunately, this issue was not addressed in the Nutrient—Based subsidy (NBS) policy. We are again trying to create buffer stock of three fertilisers,” said a senior Fertiliser Ministry official.
The Department of Fertilisers (DoF) is preparing a Cabinet proposal to “maintain buffer stock of 10 per cent of the total requirement of DAP and MoP and 5 per cent of the total requirement of urea,” the official said.
This means, about 14 lakh tonnes of urea, 10 lakh tonnes of DAP and over four lakh tonnes of MoP would be maintained as buffer stock every year to obviate any shortages at the local level during the peak sowing seasons, the official added.
Earlier, the government used to create buffer stock of only 5 per cent of the country’s demand of urea, DAP and MoP.
According to government estimates, the average demand for urea, DAP and MoP in the country is estimated at 281 lakh tonnes, 107 lakh tonnes and 44 lakh tonnes, respectively.
“We are feeling that we should maintain buffer stock because global prices are going up and we are dependent almost 90—100 per cent on import of DAP and MoP,” the official said.