Cabinet Approves Rs 28,655 Net Subsidy to P & K Fertilizers for Rabi Season for the Benefit of Farmers ; additional grant to DAP

 The government announced on Tuesday a net subsidy of Rs 28,655 crore for phosphate and potash (P&K) fertilizers for October / March of this fiscal year to ensure that farmers get affordable nutrients during the rabbi planting season.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the Nutrient Based Subsidy Rates (NBS) for Phosphorus (P) and potassium (K) fertilizers for the period from October 2021 to March 2022. The Rabi season begins in October.

 According to the NBS, the funding rates for N (nitrogen) per kg have been set at Rs 18,789, P (phosphor) Rs 5,323, K (potash) Rs 10,116 and S (sulfur) Rs 2,37, according to an official statement. 

The NBS rate, which was raised in June for the Kharif season (April / September), has been extended through March 2022, according to sources.

Although the NBS rate was not increased, sources said that through a one-time special package, the government provided additional subsidies of around 6.5 billion rupees to DAP (diammonium phosphate) and three other NPK fertilizers to help keep retail prices high.

 After urea, DAP is the most used by farmers. According to an official statement, the "total amount of the renovation will be 28,602 million rupees".

The government said it had also provided a special one-time package of additional subsidies to DAP for a preliminary additional cost of Rs 5,716 billion.

A one-time special package of additional subsidies was provided for the three most consumed NPK varieties, namely NPK 102626, NPK 2020013 and NPK 123216, at the price of Rs 837 crore.

The general subsidy required could be Rs 35,a hundred and fifteen crore, the announcement said.

The CCEA additionally authorized the inclusion of potash derived from molasses (0:0:14.5:0) beneathneath the NBS Scheme.

"Net subsidy required for Rabi 2021-22 after deducting financial savings could be Rs 28,655 crore," as in keeping with the announcement.

In June additionally, the CCEA had raised the subsidies for DAP and a few different non-urea fertilisers with the aid of using Rs 14,775 crore.

The government had allocated nearly Rs 79.6 billion for fertilizer subsidies in the 202122 budget and the figures may increase after additional subsidies are made available. sources said that total fertilizer subsidies would exceed Rs 1 million lakh this fiscal year.

In listing the benefits, the government said Tuesday that the additional subsidy would allow all PandK fertilizers to be readily available to farmers during the 202122 Rabi season at subsidized / affordable prices.

The center supports farmers and the agricultural sector by continuing the previous level of subsidies and awarding special packages with additional subsidies for DAP and three mainly consumed NPK varieties. 4,444 "There will be Rs 438 per bag for Di Ammonium Phosphate (DAP) and Rs 100 per bag for NPK 102 626, NPK 202 013 and NPK 13216 respectively to keep the prices of these fertilizers affordable for farmers," the statement said.

In June, the government increased the DAP subsidy by 140 percent to Rs 1,200 per 50 kg bag to ensure that farmers continue to obtain this important fertilizer at an affordable price despite rising world prices.

The government provides fertilizers, namely urea and 24 types of P&K fertilizers, to farmers at subsidized prices through manufacturers / importers.

The P&K fertilizer subsidy will be regulated by the NBS program as of April 2010.

In the case of urea, the center has set the maximum retail prices and reimburses the difference between the MRP and the cost of production in the form of subsidies.