The Union Cabinet on May 17 approved a Rs 1.08 lakh crore package for fertiliser subsidy for the April-September kharif season.
Of the Rs 1.08 lakh crore subsidy, Rs 70,000 crore is for urea and Rs 38,000 crore for Di-ammonium Phosphate, or DAP.
Briefing the media at the conclusion of the Cabinet's meeting, Mansukh Mandaviya, the minister of chemicals and fertilisers, said while the total subsidy amount was lower than last year, it was still higher than normal, confirming what CNBC-Awaaz had reported earlier, quoting sources.
"The situation in 2022-23 was such that fertiliser subsidy had to be increased sharply (due to the Russia-Ukraine war)," Mandaviya said, adding that the government had ensured rising global fertiliser prices did not hurt India's farmers.
The fertiliser minister went on to add that the reduced fertiliser subsidy of Rs 1.08 lakh crore for the April-September kharif season will not lead to higher prices for farmers.
"The Cabinet decision will have the two-fold benefit of ensuring availability of DAP and other P&K fertilisers to farmers at subsidised, affordable and reasonable prices during Kharif season and will also ensure rationalisation of subsidy on P&K fertilisers," the government said in a statement.
As per the 2023-24 Budget documents, the revised estimate for the fertiliser subsidy given in 2022-23 is Rs 2.25 lakh crore. However, Mandaviya said on May 17 that the Centre's fertiliser subsidy bill in 2022-23 was Rs 2.54 lakh crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
