The centre has set up an inter-ministerial group under the fertilizer secretary Krishnan to review the subsidies for fertilizers every year. The new pricing regime, Nutrient Based Subsidy Scheme (NBS) will come in effect from April 1 this year.

It was decided to keep a check on the prices at present and slowly move to a scenario of complete price decontrol under the framework of NBS.

Some analysts believe that the new pricing mechanism would bring benefits like soil health and subsidy cuts and increased competition among the more efficient companies only at a later stage.

A government official said that the group is formed as per the requirements of the fertilizer minister M K Azhagiri. Some of the ministers have asked for the prices of primary nutrients to remain at the current level for at least a year.

The ministers will meet once before kharif crop and once before rabi crop each year to review the prices of secondary and micro nutrients. The group will also make sure that the farmer prices for crucial fertilizers does not rise more than five percent.

In another development the leftists have asked the government to withdraw its decision to decontrol the price of fertilizers and a new nutrient-based subsidy scheme. They said that this would have "disastrous repercussions" on the prosperity of small farmers.

Analysts believe that the prices fixed by the companies would be dependent on the cost of the import prices for raw materials and inputs and also on the rates at which these imports are contracted.

The stocks of fertilizers companies saw a moderate rise in the markets today.