In a major policy decision, the government has approved reimbursement of freight subsidy for transportation of fertilisers through the coastal shipping route, it is learnt. Earlier, this financial support was available only for fertiliser movement via railways. This move by the Department of Fertilisers is expected to result in a significant reduction in the relevant freight, says a report.
However, only movement of subsidised indigenous fertilisers—urea and phosphatic and potassium (P&K) fertilisers—through coastal shipping/inland waterways will be eligible for the payment of freight subsidy at this stage, the report said.
It added that, moreover, in case of single mode or multimodal transportation of fertilisers, which includes coastal shipping, the freight subsidy will be restricted to the railway charges, or the actual freight incurred, which is less.
