The government on Wednesday approved a subsidy of Rs 60,939.23 crore for phosphatic and potassic (P&K) fertilisers, including DAP, for the first six months of this fiscal, as part of its efforts to provide soil nutrients to farmers at an affordable price.
The Union Cabinet has approved nutrient-based subsidy (NBS) rates for Phosphatic and Potassic fertilisers for the Kharif season from April 1, 2022, to September 30, 2022.
Briefing media about the Cabinet decision, Information and Broadcasting Minister Anurag Thakur said the Cabinet has approved a subsidy of Rs 60,939 crore on P&K fertilisers for the Kharif season against the subsidy of around Rs 57,150 crore on these nutrients for the entire last fiscal.
He said the subsidy on DAP (di-ammonium phosphate) has been increased to Rs 2,501 per bag and the farmers will continue to get the DAP at Rs 1,350 per bag.
Thakur said the subsidy on DAP has been increased to 2,501 per bag from 512 per bag in 2020-21.
The minister highlighted that even as the prices of fertilisers have increased sharply in the global markets, the government has ensured that the burden has not increased for the farmers.
The Nutrient Based Subsidy (NBS) Scheme is being implemented since April 2010.
Under the NBS Policy, a fixed rate of subsidy (in Rs per Kg basis) is announced on nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) by the government on annual basis.
The per Kg subsidy rates on the nutrients N, P, K, and S are converted into per tonne subsidy on the various P&K fertilisers covered under the NBS Policy.
The government is making available fertilisers, namely urea and 24 grades of P&K fertilisers to farmers at subsidised prices through manufacturers/importers.
In the case of urea, the Centre fixes the maximum retail prices and reimburses the difference between the MRP and production cost in form of a subsidy.