In a case of catch-22 while government seems willing to accept the price diktat of gas supplying company, fertilizer cooperatives are crying foul at the whimsical decision.
Oman India Fertliser Company working together with Indian fertilizer companies IFFCO and KRIBHCO under an agreement has been supplying urea in bulk to India.
But Oman India has recently effected a hefty hike in price of gas citing price development on the global market an explanation for the move.
The Indian fertilizer circles are stumped by the decision of Oman India and term it a violation of an agreement that was supposed to span fifteen years.
However, officials of the Chemical Ministry are of the view that Oman’s hiked price is not only way below the international price but also any day cheaper than alternative fuel sources.
Informed sources say the Govt of India would soon consider the matter and grant its approval. The Govt’s thinking is taking the matter to international arbitration will only harm India’s interests.