Govt considering subsidy to offset rise in prices

New Delhi: The Centre on Saturday said it is considering subsidies to offset rise in global prices of raw materials of phosphatic and potassic (P&K) fertilisers in a bid to ensure their availability to farmers at subsidised rates across the country.

The government is taking all necessary steps to safeguard the interests of farmers during the COVID-19 crisis, it said.

Unlike urea, P&K fertilisers are decontrolled products. The prices are fixed by the manufacturers and the government gives them fixed subsidies each year. For the current fiscal year, subsidies for P&K fertilisers have been kept unchanged.

In a statement, the Fertiliser Ministry said in the last few months, the international prices of raw materials of Di-ammonium Phosphate (DAP) and other P&K fertilisers have increased sharply. Prices of finished DAP, etc in the international market have also risen proportionately. "Despite this sharp increase, DAP prices in India were not increased by the companies till last month. However, some companies have now increased the DAP price," it said.

However, the government is fully sensitive to the concerns of farmers and is already taking steps to tackle the situation so that the farming community can be saved from the effects of this price rise of P&K fertilisers (including DAP), it said. On the pricing front of DAP, the government has already asked all the fertiliser companies to sell their old stocks of DAP, etc at old prices only, it said.