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Fertilizer firms get to print new, GST-updated MRPs on unsold stock

LiveMint logoLiveMint 03-07-2017 Laxmi Devi

New Delhi: The government has allowed fertilizer companies to print revised maximum retail prices (MRPs) by including the new goods and services tax (GST) rate on existing unsold stocks of about 10 lakh tonnes, with some riders.

The companies have been given three months till September to clear the unsold stocks by stamping or printing the new retail price. Last week, the GST on fertilizers was reduced to 5% from 12% in the interest of farmers. The lower GST will bring down retail prices. “The consumer affairs ministry has given exemption to fertilizer companies to print or stamp the MRP on unsold stock by incorporating the new GST rate,” a senior fertilizer ministry official said. The companies have been asked to declare revised MRPs by way of stamping or putting stickers or online printing, as the case may be, after complying with some conditions, he said.

Among the conditions specified, the companies have been asked not to overwrite revised prices on the existing MRPs, which should be continued to remain displayed. That apart, the difference between retail prices originally printed on the package and the revised prices should not be higher than the extent of increase in the tax or in the case of imposition of fresh tax on account of implementation of the GST and rules, the official added.

The manufacturers and importers should create awareness among farmers of this change in newspapers by publishing the revised rates on unsold stock. The retail price of urea, which is fixed by the government, is at Rs5,360 per tonne now. The prices of DAP and potash, fixed by private companies, are at Rs22,000 and Rs11,000 per tonne, respectively. With the GST rate kept lower, the prices of these soil nutrients will come down.

India produces 24-25 million tonnes of urea, widely used as fertilizer, and imports 7 million tonnes to meet the shortage. PTI

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