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Updated February 29th, 2024 at 16:57 IST

Government approves Rs 24,420 crore subsidy for P&K fertilisers

Subsidies are slated to be disbursed to fertiliser companies based on approved and notified rates.

Reported by: Business Desk
Fertilisers
Fertilisers | Image:Pexels
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The Union Cabinet, led by Prime Minister Narendra Modi, has approved subsidy amounting to Rs 24,420 crore for Phosphatic and Potassic (P&K) fertilisers ahead of kharif season. The announcement stresses on the government's commitment to supporting farmers by ensuring the availability of essential soil nutrients.

Under the approved proposal put forth by the Department of Fertilisers, the subsidy rates for Nutrient-Based Subsidy (NBS) on P&K fertilisers have been fixed for the kharif season of 2024-25, slated from April 1 to September 30. Notably, DAP (Di-ammonium Phosphate), a critical soil nutrient, will continue to be priced at Rs 1,350 per quintal, maintaining stability in retail prices.

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I&B Minister Anurag Thakur highlighted that the nutrient-based subsidy for the upcoming kharif season encompasses various elements. Nitrogen (N) subsidy stands at Rs 47.02 per kg, phosphatic (P) at Rs 28.72 per kg, potassic (K) at Rs 2.38 per kg, and Sulphur (S) at Rs 1.89 per kg for the specified period.

The government's proactive stance is evident in the increase of subsidy on phosphatic fertilisers to Rs 28.72 per kg for the 2024 kharif season, up from Rs 20.82 per kg in the preceding 2023 rabi season. Conversely, subsidies for nitrogen (N), potassic (K), and Sulphur (S) remain unchanged.

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Furthermore, to mitigate import dependence on DAP, the cabinet has sanctioned the incorporation of three new fertiliser grades under the NBS scheme. This strategic move aims to fortify domestic agricultural practices and reduce reliance on external sources.

Subsidies are slated to be disbursed to fertiliser companies based on approved and notified rates, ensuring that farmers gain access to fertilisers at affordable prices. The government's commitment to farmers' welfare is reflected in its endeavour to provide 25 grades of P&K fertilisers at subsidised rates through manufacturers and importers.

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As per official data, the government has allocated nearly Rs 1.71 lakh crore towards fertiliser subsidies until January in the current fiscal year. For the upcoming fiscal year 2024-25, the allocated fertiliser subsidy amounts to Rs 1.64 lakh crore, as opposed to the revised estimates of Rs 1.89 lakh crore for the ongoing financial year. 
 

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Published February 29th, 2024 at 16:57 IST

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