Cabinet likely to consider subsidy on P&K fertiliser

The Cabinet is likely to discuss tomorrow a proposal to fix the subsidy on non-urea phosphatic and potassic (P&K) fertilisers for the 2013-14 fiscal.

Under the nutrient based subsidy (NBS) regime introduced on April 1, 2010, retail prices of 22 varieties of P&K fertilisers have been freed. But, the government reimburses companies the difference in cost of selling these soil nutrients at lower price to farmers.
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"Cabinet is likely to consider tomorrow fixing the new NBS rates for P&K fertiliser for this fiscal," a senior Fertiliser Ministry official said.
The ministry is expected to reduce the subsidy on DAP by Rs 2,000 per tonne to Rs 12,350 a tonne and that on MoP by Rs 2,700 per tonne to Rs 11,700 a tonne for the 2013-14 fiscal, another official said.
In the 2012-13 fiscal, the government fixed subsidy on DAP at Rs 14,350 per tonne and on MoP at Rs 14,400 a tonne, wile, the subsidy on DAP and MoP for the 2011-12 fiscal was at Rs 19,763 and Rs 16,054 per tonne, respectively.
India imported 78.64 lakh tonne urea till February, as against 78.34 lakh tonne in the entire 2011-12 fiscal. During April-February period of 2012-13 fiscal, import of DAP stood at 57.79 lakh tonne, and that of MOP at 18.14 lakh tonne.
On average, India consumes 30 million tonne urea and around 25-26 million tonne DAP, MoP and complex fertilizers annually.