The Union Cabinet on February 29 approved the proposal to fix the Nutrient-Based Subsidy (NBS) rates for Kharif season, 2024 from April 1 to September 30 on Phosphatic and Potassic (P&K) fertilisers and inclusion of 3 new fertiliser grades under NBS scheme.
The tentative budgetary requirement for Kharif season 2024 would be approximately R 24,420 crore, announced Union Minister Anurag Thakur during a press briefing in New Delhi.
The Centre is making 25 grades of P&K fertilisers available to farmers at subsidised prices through fertiliser manufacturers or importers.
The subsidy on P&K fertilisers is governed by NBS Scheme.
In view of the recent trends in the international prices of fertilisers & inputs i.e. Urea, DAP, MOP and Sulphur, Government has decided to approve the NBS rates for Kharif 2024.
The subsidy would be provided to the fertiliser companies as per approved and notified rates so that fertilisers are made available to farmers at affordable prices. However, the subsidy on nitrogen (N), potassic (K) and Sulphur (S) has been kept unchanged for 2024 kharif season.
The government said that the inclusion of three new grades in the NBS scheme will give the farmers the freedom to pick fertilisers as per the soil requirement.
"The government has consistently shielded farmers in India from the spike in prices of fertiliser and urea globally. It is being ensured that the cost of fertiliser is maintained this year at the same rate as last year," Anurag Thakur, Minister for Information and Broadcasting, said during the briefing on Cabinet decisions.
The subsidy granted by the government for the six months of Kharif season will immensely benefit all farmers, Thakur added.
At Rs 1.64 lakh crore, the allocation for fertiliser subsidy for the next fiscal is 13 percent less compared to the revised budget estimate of 1.89 lakh crore for FY24.
The Central government provides nutrient-based subsidy on fertilisers and subsidy on urea. The cut in the subsidy amount for FY25 is seemingly due to a drop in international prices.
In 2022-23, the country’s fertiliser subsidy reached a record high of Rs 2.25 lakh crore primarily due to global supply shocks.
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