Cabinet okays Rs 1.08 lakh crore fertiliser subsidy for kharif season
Move aims at ensuring no increase in retail process of fertilisers for 12 crore farmers in country
In a major decision, the Union Cabinet, which is chaired by Prime Minister Narendra Modi, has on Wednesday approved a Rs 1.08 lakh crore fertiliser subsidy for the 2023-24 kharif season. The move is aimed at ensuring no increase in the retail process of fertilisers for around 12 crore farmers in the country.
While briefing about the decisions taken at the Cabinet meeting, Union Fertiliser Minister Mansukh Mandaviya said: “The Cabinet has approved Rs 70,000 crore subsidy for urea and Rs 38,000 crore for DAP and other fertilisers.”
“A total of Rs 1.08 lakh crore will be spent on fertiliser subsidy for the Kharif season (April-September) and there will be no change in the MRP (Maximum Retail Price),” the minister said, adding that the price of urea is Rs 276 per bag and the price of DAP is Rs 1,350 per bag.
The rates will be applicable for the rabi season 2022-23 (January-March), as well as the kharif season (April-September) for phosphatic and potassic (PNK) fertilisers.
Mandaviya further said: “To fulfill its commitment of providing high-quality and subsidized PNK fertilisers to farmers, the government will allocate a subsidy of Rs 38,000 crore for the kharif season 2023.”
The NBS scheme, which governs the subsidy on PNK fertilisers, has been instrumental in ensuring the availability of essential nutrients to farmers at subsidized prices since April 1, 2010. The government has now approved the revision in NBS rates to provide 25 grades of P&K fertilisers to farmers during the rabi and kharif seasons.
This decision by the Cabinet has brought two major benefits for the farmers such as it ensures the availability of diammonium phosphate (DAP) and other PNK fertilisers to farmers at subsidised, affordable, and reasonable prices during the Kharif season, which will enable farmers to access essential fertilisers necessary for their agricultural activities.
The decision would also help in rationalizing the subsidy on PNK fertilisers, ensuring effective and efficient utilization of government resources.
“The Cabinet decision will have the two-fold benefit of ensuring availability of DAP and other PNK fertilisers to farmers at subsidized, affordable and reasonable prices during Kharif season and will also ensure rationalization of subsidy on P&K fertilisers,” the minister said.
