Govt approves Rs 22,303 crore subsidy on P&K fertilisers for rabi season 2023-24
The Union Cabinet has approved the proposal of the Department of Fertilizers for fixing the NBS rates for Rabi Season
image for illustrative purpose
New Delhi: The government on Wednesday announced a Rs 22,303 crore subsidy on phosphatic and potassic (P&K) fertilisers for the current rabi season and said the farmers will continue to get key soil nutrient DAP at Rs 1,350 per bag.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal of the Department of Fertilizers for fixing the Nutrient Based Subsidy (NBS) rates for the Rabi Season 2023-24 (from October 1, 2023 to March 31, 2024) on P&K fertilisers.
Briefing reporters, I&B Minister Anurag Thakur said the Modi government is committed to ensuring adequate availability of fertilisers to farmers at affordable prices, Thakur said. "We estimate an expenditure of Rs 22,303 crore as subsidy on P&K fertilisers for rabi season of 2023-24," he added.
In May, the Union Cabinet approved a subsidy of Rs 38,000 crore on P&K fertilisers for the Kharif season of 2023-24. The minister said that farmers will continue to get DAP (di-ammonium phosphate) at the old rate of Rs 1,350 per bag (50 kg each). Similarly, the NPK will be available at the old rate of Rs 1,470 per bag and SSP (single super phosphate) at around Rs 500 per bag. The MoP (Muriate of Potash) rates will come down to Rs 1,655 per bag from Rs 1,700 per bag, Thakur said.
The Cabinet has fixed the NBS rate of nitrogen (N) at Rs 47.02 per kg, phosphorus (P) at Rs 20.82 per kg, potash (k) at Rs 2.38 per kg and Sulphur (S) at Rs 1.89 per kg. For the kharif season of 2023-24, the government had a fixed per kg subsidy rate on N at Rs 76 per kg, Rs 41 per kg on P, Rs 15 per kg on K and Rs 2.8 per kg on S.
When asked about the reduction in per kg subsidy rate of N, P, K and S, Thakur said the international prices of finished products and raw materials have come down slightly, but it is still high, and therefore, the government is providing subsidies to maintain the old rate. He said the fertilisers subsidy stood at nearly Rs 2.55 lakh crore in the last fiscal as against around Rs 73,000 crore in 2014-15.
On benefits, the government said in a statement that the availability of fertilisers to farmers at subsidised, affordable and reasonable prices will be ensured. "Rationalisation of subsidy on P&K fertilisers in view of recent trends in the international prices of fertilisers and inputs," it added. The government is making available 25 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by the NBS Scheme with effect from April 1, 2010.
