Cabinet approves Rs 51,875 crore subsidy for P&K fertilisers for rabi season

This will enable smooth availability of all P&K fertilisers to farmers during the rabi season at subsidized / affordable prices and support the agriculture sector, it said.

"The volatility in the international prices of fertilisers and raw materials has been primarily absorbed by the union government," it added.

The government had in April approved a subsidy of Rs 60,939.23 crore for P&K fertilisers for first six months (kharif season) of current fiscal year.

The NBS scheme is being implemented since April 2010.

Under the scheme, a fixed rate of subsidy used to be announced on nutrients namely nitrogen, phosphate, potash and sulphur by the government on annual basis. However, it is being announced now on a biannual basis.

The per kilogram subsidy rates on 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 to farmers at subsidized prices through fertiliser manufacturers/importers.

In view of steep increase in the international prices of fertilisers and inputs i.e urea, DAP, MOP and sulphur, the government has decided to absorb the increased prices by increasing subsidy on P&K fertilisers, including DAP.

The subsidy would be released to fertiliser companies as per approved rates so that they can make fertilisers available to farmers at an affordable price, the statement said.