Financial Daily from THE HINDU group of publications
Saturday, Nov 30, 2002
Financial Daily from THE HINDU group of publications Saturday, Nov 30, 2002 |
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Agri-Biz & Commodities
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Agricultural Policy Industry & Economy - Fertilisers `Group pricing policy not to hit urea producers' Our Bureau
MUMBAI, Nov. 29 GROUP pricing policy for urea will not lead to a significant fall in retention price and consequently not impact the profitability of urea producers. According to a Cris Infac report, the group pricing policy, which has not yet taken final shape, involves dividing fertiliser units into groups. The retention prices for these units will be revised on the basis of their feedstock and group average. Group pricing is considered the roadmap for sector deregulation. However, according to Cris Infac, group pricing will not impact the bottomlines of urea producers because retention prices have already fallen significantly after the Centre implemented seventh and eighth pricing policies for the fertiliser sector. Since group pricing involves averaging retention prices of group members, the average is unlikely to be much different from the present retention price being paid to units. According to the report, only some of the fertiliser units having retention prices at levels higher or lower by 20 per cent than the group average may be affected by group pricing.
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