Citing a drop in global raw material prices, the Central government has announced that PSUs (RCF and NFL) are reducing farmgate prices of complex fertilisers with immediate effect. MOP prices will be reduced by Rs 5k/t to ~Rs 11k/t, DAP by Rs 2.5k/t to ~Rs 22k/t and NPK by ~Rs 1k/t. The cut is despite a reduction in subsidies for complex fertilisers for FY17. NBS rates for nitrogen/phosphorus have been slashed by 24/29% YoY, whereas potash subsidies are flat.