BackCabinet approves additional ₹14,775 cr for fertiliser subsidies
The Cabinet approves rates for Phosphatic, Potassic fertiliser for 2021-22Cabinet hikes DAP fertiliser by ₹700 per bag
PremiumThe Union Cabinet has approved the proposal of the Department of Fertilizers for fixation of 'Nutrient Based Subsidy Rates' for Phosphatic and Potassic (P&K) Fertilizers for the year 2021-22, said Minister of State for Chemicals and Fertilizers Mansukh Mandaviya on Wednesday.
In a press conference along with I&B minister Prakash Javdekar, Mandaviya said the Cabinet has hiked subsidy rates on DAP fertiliser by ₹700 per bag. Every bag of DAP price at ₹2,400 now. This would cost an extra ₹14,775 crore to the exchequer.
Earlier, the Centre slashed the subsidy on non-urea fertilisers, a move that would reduce the burden on the exchequer to ₹22,186.55 crore in this fiscal amid the COVID-19 outbreak.
The subsidy for nitrogen has been reduced to ₹18.78 per kg, phosphorous at ₹14.88 per kg, potash at ₹10.11 per kg and sulphur at ₹2.37 per kg for the current financial year, the fertiliser ministry said in a statement.
For 2019-20, the subsidy for nitrogen was fixed at ₹18.90 per kg, phosphorous at ₹15.21 per kg, potash at ₹11.12 per kg and sulphur at ₹3.56 per kg. And, the expected expenditure was ₹22,875 crore during 2019-20.
In 2010, the government had launched the nutrient-based subsidy (NBS) programme under which a fixed amount of subsidy, decided on an annual basis, is provided on each grade of subsidised phosphatic and potassic (P&K) fertilisers, except for urea, based on the nutrient content present in them.
Retail prices of non-urea fertilisers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while Centre gives a fixed subsidy each year.
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