New Delhi, The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for Phosphorus(P) and Potash (K) Fertilizers for the year 2021-22 (till the present season).

Briefing media persons about the decision, Minister of State for Chemicals and Fertilizers Mansukh Mandaviya said Farmers will get subsidy of Rs 1200 per bag of Di-Ammonium Phosphate (DAP) fertilizer instead of Rs 500 and a bag of DAP fertilizer for Rs 1200 instead of Rs 2400 per bag.

Subsidy has been given on Nitrogen above Rs 18 per kg, on Phosphorous above Rs 45 per kg and on Potash above Rs 10 per kg.

The Union Government is making available fertilizers, namely Urea and 22 grades of P&K fertilizers (including DAP) to farmers at subsidized prices through fertilizer manufacturers/ importers, an official statement said.

The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f. April 1, 2010. In accordance to its farmer friendly approach, the Government is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices.

The subsidy is released to fertilizer companies as per NBS rates so that they can make available fertilizers to farmers at affordable price.

In last few months, the international prices of raw materials of DAP and other P&K fertilizers have increased sharply. Prices of finished DAP etc in international market have also increased.

Despite this sharp increase, DAP prices in India were initially not increased by the companies

however, some companies increased the DAP price in the beginning of this financial year.

Government is fully sensitive to the concerns of farmers also and is already taking steps to tackle the situation so that farming community can be saved from the effects of this price rise of P&K fertilizers (including DAP), the statement said.

As anticipated that international prices may come down in few months, the Government may review the situation accordingly and decide regarding subsidy rates at that point of time.

The estimated additional subsidy burden for such an arrangement will be around Rs 14,775 crore, the statement said.

(EW News Desk)