New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved Rs 51,875 crore subsidy for phosphatic & potassic fertilisers for the rabi season.
“This will enable smooth availability of all P&K fertilizers to the farmers during Rabi 2022-23 (October-March) at the subsidized / affordable prices of fertilizers and support the agriculture sector. The volatility in the international prices of fertilizers and raw materials has been primarily absorbed by the Union Government,” said a, official release.
The subsidy on P&K fertilisers, which includes support for indigenous fertiliser through freight subsidy, will be provided based on the nutrient based subsidy rates approved by the CCEA to ensure smooth availability of these fertilisers to the farmers at affordable prices.
The nutrient based subsidy scheme is being implemented since April 2010.
Under the NBS policy, a fixed rate of subsidy (in ₹per Kg basis) is announced on nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) by the government on annual basis.
The per kilogram subsidy rates on the nutrients are converted into per tonne subsidy on the various P&K fertilisers covered under the policy.
“Government is making available fertilizers, namely Urea and 25 grades for 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,” the Cabinet said.
