A farmer applies manure to his field in a village in Madurai. file | Photo Credit: PTI
With fertilizer prices continuing to remain high due to global factors such as decline in production and increase in logistics cost especially due to the situation in Ukraine, the Center expects fertilizer subsidy to cross ₹2.25 lakh crore this year. Accordingly, the Union Cabinet on Wednesday approved a subsidy of Rs 1.08 lakh crore for the current Kharif or monsoon season, Fertilizer Minister Mansukh Mandaviya said.
Of this, ₹38,000 crore will go towards subsidizing Phosphatic and Potassic (P&K) fertilizers, while ₹70,000 crore will go towards urea subsidy. Last year the total fertilizer subsidy was around Rs 2.56 lakh crore.
Urea, DAP rates stable
Mr Mandaviya told reporters that the Center would ensure that there is no change in the prices of urea and diammonium phosphate (DAP) during the season. At present, the subsidy rate of urea is Rs 276 per bag and DAP is Rs 1,350 per bag. The minister said that about 12 crore farmers would be benefited by this decision.
The total consumption of urea in the country is around 325 to 350 Lakh Metric Tonnes (LMT). Also 100 to 125 LMT DAP; 100 to 125 LMT NPK; And 50 to 60 LMT Muriate of Potash (MOP) is also sold in the country. “Farmers should get fertilizers on time. They should not be burdened at a time when international prices are high.
12 crore farmers benefited
The minister said that the fertilizer subsidy usually ranges between Rs 1 lakh crore to Rs 1.25 lakh crore. “Last year, it was Rs 2.56 lakh crore,” he said, adding that with 1,400 lakh hectares of land under cultivation across the country, the fertilizer subsidy for one hectare is around Rs 8,909. “We have 12 crore farmers and one farmer gets a subsidy of Rs 21,223,” he said.
The actual cost of a bag of DAP was ₹4,000, Mr. Mandaviya said. “But for farmers, the rate is ₹1,350 per bag. ₹2,461 per bag is the subsidy,” he explained. The NPK subsidy is Rs 1,639 per bag, while the MOP subsidy is Rs 734 per bag. Center spends Rs 2,196 on urea per bag
“The rate of subsidy is based on the average price of fertilizer imported into the country in the last six months. We have to stock fertilizers so that farmers don’t face any problem. We have sufficient stock of 150 LMT, which is available for Kharif season.