Govt approves Rs 60,939 crore subsidy for P&K fertilisers for April-September

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 afordable 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).
Briefng 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.pti