Nutrient-based subsidy announced for Rabi season 2021-22


The Centre on Tuesday approved the proposal of the Department of Fertilisers for fixation of nutrient-based subsidy rates for P&K fertilisers for the year 2021-22, i.e., from October 1, 2021 till March 31, 2022, entailing net subsidy for Rabi 2021-22 of Rs 28,655 crore.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved rates for nutrient-based subsidy as Rs 18.789 per kg for nitrogen (N), Rs 45.323 per kg for phosphorus (P), Rs 10.116 for potash (K), and Rs 2.374 for sulphur (S), an officials release said.

The total amount of rollover will be Rs 28,602 crore, the government said, adding: “Special one-time package for additional subsidy on Di-Ammonium Phosphate (DAP) at the tentative additional cost of Rs 5,716 crore would be given”.

The government also announced a special one-time package for additional subsidy on three most consumed NPKs grades – NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16 – at the tentative cost of Rs 837 crore.

“Therefore, the total subsidy required will be Rs 35,115 crore while the net subsidy required for Rabi 2021-22 after deducting savings will be Rs 28,655 crore,” the release said.

The CCEA also approved the inclusion of potash derived from molasses (0:0:14.5:0) under the NBS scheme.

This will enable smooth availability of all P&K fertilisers to the farmers during Rabi Season 2021-22 at the subsidised/affordable prices and support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades, the release said.

It will give Rs 438 per bag benefit on DAP and Rs 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13, and NPK 12-32-16 so as to keep prices of these fertilisers affordable for the farmers.

The government said it is making available fertilisers, namely urea and 24 grades of P&K fertilisers to the farmers at subsidised prices through fertiliser manufacturers/ importers. The subsidy on P&K fertilisers is being governed by NBS scheme w.e.f. April 1, 2010.

“In accordance with its farmer-friendly approach, the government is committed to ensure the availability of P&K fertilisers to the farmers at affordable prices. The subsidy would be released to fertiliser companies as per above rates so that they can make available fertilisers to farmers at an affordable price than it would have been otherwise,” the release added.