The Union Cabinet, chaired by Prime Minister Narendra Modi, has granted approval for a subsidy worth Rs 22,303 crore on Phosphatic and Potassic (P&K) fertilizers for the Rabi season 2023-24. This decision is aimed at ensuring that farmers continue to receive fertilizers at affordable rates, even in the face of an uptrend in international markets.
Nutrient-Based Subsidy (NBS) Rates
The approved rates under the Nutrient-Based Subsidy include DAP (Diammonium Phosphate) available at Rs 1,350 per bag, maintaining the old rates, and NPK (Nitrogen, Phosphorus, Potassium) at the price of Rs 1,470 per bag. Additionally, an extra subsidy of Rs 45 per tonne will be provided on DAP for the upcoming Rabi season 2023-24, ensuring that farmers can procure DAP at the same old rate.
Ensuring Affordability
The government has been committed to fixing subsidy rates to shield farmers from the impacts of international fertilizer price increases since 2021. This move aims to ensure that farmers continue to have access to fertilizers at concessional rates. In addition to DAP, NPK, and SSP (Single Super Phosphate) remaining at the old rates, MOP (Muriate of Potash) will be available at Rs 1,655 per bag, which is Rs 45 less than the previous rate of Rs 1,700 per bag. The price of urea will also remain unchanged.
This decision by the Cabinet ensures the availability of fertilizers to farmers at subsidized, affordable, and reasonable prices. It reflects the government’s commitment to making 25 grades of P&K fertilizers available to farmers at subsidized prices through manufacturers and importers. The subsidy on P&K fertilizers has been governed by the Nutrient-Based Subsidy Scheme since April 2010.
The Cabinet’s decision aligns with the government’s farmer-friendly approach and aims to support farmers by ensuring the affordability and availability of essential fertilizers.
