In a move aimed at benefitting farmers and removing transport bottlenecks for fertilisers, the government has done away with the licensing permits for foreign vessels transporting fertilisers. The development assumes significance as a study under the government's Sagarmala project indicates that movement of 6-7 million tonne per annum (MTPA) of fertilisers via coastal shipping will save 800 to 900 crore rupees. The decision comes after the government abolished the licensing requirements for foreign vessels transporting agriculture, fishery and animal produce, besides allowing Indian citizens to charter ships for these.

Shipping Minister Nitin Gadkari said, the move is another step to improve the condition of the farmers and increase their income. He said, the committee on doubling farmers' income has called for a strategy towards enabling farmers to compete at a global scale and has highlighted unavailability of fertilisers in desired quantity.

Mr Gadkari said, the water-bonre transportation has the potential of simultaneously reducing the per tonne km cost of transporting goods to one-sixth as well as reducing the greenhouse emissions per tonne km of transportation of long distances.

Shipping Secretary Gopal Krishna said the move will not only be a significant step in benefitting farmers but will also qualify for reimbursement of freight subsidy which will encourage the coastal movement of fertilisers, under the Nutrient Based Subsidy Policy.

Mr Krishna said while rail is the primary mode of transport for long-distance fertiliser movement, various studies indicate that a modal-mix shift towards coastal shipping can significantly reduce costs.

He said, providing for two-way cargo movement has the potential of reducing the cost of transport, improving cargo volumes and facilitating investment in fleet.