Cabinet approves Nutrient Based Subsidy (NBS) rates for Phosphatic & Potassic (P&K) Fertilisers
- Cabinet Committee on Economic Affairs has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22.
- The government announced a net subsidy of Rs 28,655 crore on phosphatic and potassic (P&K) fertilisers for the October-March period of this fiscal year.
- This will ensure that farmers get nutrients at affordable prices during the rabi sowing season.
Background of Fertilizer Subsidy
- Government is making available fertilizers, namely Urea and 24 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/ importers.
- The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f. 01.04.2010.
- In accordance with its farmer friendly approach, the Govt. is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices.
- The subsidy would be released to fertilizer companies as per above rates so that they can make available fertilizers to farmers at an affordable price than it would have been otherwise.
Benefits of decision
- The move will enable smooth availability of all P&K fertilizers to the farmers during Rabi Season 2021-22 at the subsidized / affordable prices of fertilizers.
- This will support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades.
- lt will give Rs. 438 per bag benefit on Di-Ammonium Phosphate (DAP) and Rs. 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 & NPK 12-32-16 so as to maintain prices of these fertilizers affordable to the farmers.
Implementation Strategy and targets:
- The subsidy on P&K fertilizers will be provided based on the NBS rates approved by the CCEA to ensure smooth availability of these fertilizers to the farmers at affordable prices.