Fertilizer Canalisation

 What is in the News ?

• The Centre has extended the tenure of Indian Potash Limited (IPL) as a canalising agency for import of urea by a year until March 31, 2024. Incidentally, the notification, issued on March 22, came on the same day the government made it clear that the availability would be more than demand in kharif due to higher stock position and as a result the country will not need to import for the next season.
• Government fertilizer companies RCF and NFL are two other canalising agencies that import urea on government account.

Fertilizer Canalization in India

• Canalization : It refers to importing/exporting certain commodities through certified government agencies.
• At present the import of Urea is canalised through the two State Trading Enterprises (STEs).
• The major canalised commodities include precious metals, arms and ammunition, and agricultural products like onions and fertilizers.

 Fertilizer Canalization in India : Purpose

• Stabilization of prices,
• Ensuring domestic availability for consumers,
• Control the flow of commodities,
• Improve bargaining power of the importers.

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