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Fertiliser firms not passing on input price cuts to buyers; Govt orders ads

After finding that some companies are selling fertilisers at higher rates despite fall in prices, government has directed firms to run advertisement campaigns immediately to tell farmers about cut in prices of phosphatic and potassic soil-nutrients.

In a directive issued to companies, Fertiliser Ministry said: 'It has been observed that most of the fertiliser companies have not given wide publication, advertisement regarding reduction of prices of fertilisers produced and imported by them.'

The companies have not taken steps to create awareness about price reduction despite their assurance that they will use all means of communication for educating farmers about the reduction in prices of fertilisers, it said.

On 1 May, government had slashed subsidy on phosphatic and potassic (P&K) fertilisers such as DAP for this fiscal in view of falling global prices. It expected that importers would pass on the decline of Rs 1,000-1,500 per tonne in global prices of di-ammonium phosphate (DAP) and potash fertilisers to farmers. The Ministry has sought clippings of advertisements to be given by companies and has warned of action for not doing the same.

'If the copies or clippings of advertisement given by the companies are not received within 10 days from the issue of this letter, it will be presumed that the companies have failed to issue such advertisement,' the directive said.
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