The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Department of Fertilisers for fixation of nutrient-based subsidy rates for phosphatic and potassic (P&K) fertilisers for the year 2021-22, till the present season.
The effective rates of nutrient-based subsidy for nitrogen post the approval would be Rs 18.78 per kg, phosphorus at Rs 45.32 per kg, potash at Rs 10.11 per kg and sulphur at Rs 2.37 per kg for the current financial year, said an official statement.
The estimated additional subsidy burden for such an arrangement will be around Rs 14,775 crore.
The Centre has been making available fertilisers, namely urea and 22 grades of P&K fertilisers (including DAP) to farmers at subsidised prices through fertiliser manufacturers or importers. The subsidy on P&K fertilisers is being governed by NBS Scheme with effect from April 1, 2010.
In last few months, the international prices of raw materials of DAP and other P&K fertilisers have increased sharply. Prices of finished DAP among others in international market have also increased. Despite this sharp increase, DAP prices in India were initially not increased by the companies. However, some companies increased the DAP price in the beginning of this financial year.
“Government is fully sensitive to the concerns of farmers also and is already taking steps to tackle the situation so that farming community can be saved from the effects of this price rise of P&K fertilisers (including DAP),” it said.
Accordingly, as a first step, the government has directed all the fertiliser companies to ensure the sufficient availability of these fertilisers in the market for farmers.
Availability of fertilisers in the country is being monitored by the government, said the statement.