The Union Cabinet on June 16 approved the proposal of the Department of Fertilizers for fixation of 'Nutrient Based Subsidy Rates' for Phosphatic and Potassic Fertilizers for the year 2021-22 (Apr-Mar), Minister of Chemicals and Fertilizers Mansukh Mandaviya said at a press conference.
As part of the nutrient-based subsidy, the cabinet has approved nitrogen subsidy at the rate of Rs 18.789 per kilogram from Rs 18.90 per kilogram earlier, the government said in a press release.
Furthermore, Phosphorus subsidy has been approved at Rs 45.323 per kilogram, Potash subsidy has been approved at Rs 10.116 per kilogram and Sulphur subsidy at Rs 2.374 per kilogram. In 2019-20 (Apr-Mar) the subsidy for Phosphorous was set at Rs 15.21 per kg, Potash at Rs 11.12 per kg and Sulphur at Rs 3.56 per kg.
The cabinet has also increased the subsidy for diammonium phosphate (DAP) fertilizer by Rs 700 to Rs 2,400 per bag.
The union government had in May announced that it would increase the fertilizer subsidy outlay for the year by Rs 14,775 crore, taking the fertilizer subsidy outlay for 2021-22 to Rs 94,305 crore from a budgeted outlay of Rs 79,530 crore.
However, the move to reduce subsidies on non-urea fertilizers is expected to reduce the burden of increasing the subsidy on DAP fertilizers.
The cabinet also approved the Inland Vessel Bill.
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