Freight rates for fer­til­iz­ers ap­proved

A de­ci­sion has been taken to re­im­burse the freight cost in re­spect of sec­ondary move­ment of fer­til­iz­ers from rake point to district/ block head­quar­ters on monthly ba­sis at the lower of the nor­ma­tive Per Tonne Per Kilo­me­tre (PTPK) rate or ac­tual ex­pen­di­tur

Cargo Talk - - Railways -

To en­sure timely and ad­e­quate avail­abil­ity of fer­til­iz­ers to farm­ers at af­ford­able prices, Depart­ment of Fer­til­iz­ers has ap­proved the freight rates for the di­rect road move­ment of fer­til­iz­ers up to 500 km from plant/port to block level, as rec­om­mended by the Tar­iff Com­mis­sion. The de­ci­sion will en­sure avail­abil­ity of urea in re­mote ar­eas, while keep­ing the cost un­der con­trol. It will be one of the ma­jor tools to main­tain the de­mand and sup­ply uni­formly all over the coun­try up to the block level and will ben­e­fit farm­ers dur­ing the peak de­mand sea­son. Fer­til­izer com­pa­nies will not be al­lowed to do in­di­rect rout­ing of fer­til­iz­ers which will save sub­sidy and pro­mote ef­fi­cient trans­porta­tion of fer­til­iz­ers. The district wise nor­ma­tive road freight rates have been com­puted in sci­en­tific man­ner in line with the pol­icy.

Freight for urea has been al­ways driven by con­sid­er­a­tions of serv­ing the farm­ing pop­u­la­tion at large in­clud­ing those in re­mote and hilly ar­eas. The in­ten­tion of the gov­ern­ment had never been to save sub­sidy by pay­ing lower than the ac­tual ex­pen­di­ture on freight. Un­cer­tainty of freight sub­sidy, on the other hand, can dis­rupt sup­ply and cre­ate scarcity amidst plenty. In this, dis­tri­bu­tion and move­ment of urea is as im­por­tant as its man­u­fac­ture if not more.


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