Cabinet approves subsidy of ₹51,875 crore to Nitrogen, Phosphorus, Potash and Sulfur for Phosphatic and Potash fertilizers for Rabi season
Cabinet approves subsidy of ₹51,875 crore to Nitrogen, Phosphorus, Potash and Sulfur for Phosphatic and Potash fertilizers for Rabi season
In view of the steep rise in the prices of fertilizers in the global market, the Center has ‘doubled’ the fertilizer subsidy for this rabi season. The subsidy of Rs 51,875 crore for Nitrogen (N), Phosphorous (P), Potash (K) and Sulfur (S) for Phosphatic and Potassic (P&K) fertilizers for the ongoing Rabi season was approved in a meeting of the Union Cabinet here on Wednesday. Approved.
Union Fertilizers and Chemicals Minister Mansukh Mandaviya said that this amount has more than doubled from the budget estimate of Rs 21,000 crore for nutrient based subsidy. Briefing reporters after the meeting, he said that the Center has revised the subsidy keeping in mind the rising prices in the market.
‘Highest ever’
He said the total fertilizer subsidy would be Rs 1,38,875 crore including Rs 80,000 crore for urea for Rabi season and Rs 2.25 lakh crore for both Rabi and Kharif. “This is the highest subsidy ever. Last year it was ₹1.65 lakh crore,” Mr Mandaviya said and added that since commercial prices had doubled due to the Ukraine-Russia conflict and logistics issues due to the pandemic, the Center decided to double the subsidy component as well. “The increased prices would have burdened the farmers. We have ensured that there will be no increase in fertilizer prices in the next six months.
Mr. Mandaviya said that a bag of di ammonium phosphate costs ₹ 1,350 and without subsidy it would have cost ₹ 2,650. On urea, he said, the subsidy was around Rs 2,400 per bag as a bag was being sold for around Rs 266 instead of the market price, which was Rs 2,700.
He said that the Center has taken measures to increase the production of urea in the country. While the requirement was 350 Lakh Metric Tonnes (LMT), the production in the country was 250 LMT. He said that four new plants are coming up and nano urea will also gradually replace the use of urea. Shri Mandaviya said that the country has sufficient stock of fertilizers for this season and reports about farmers queuing up to buy fertilizers are baseless.
The Center said that this step will help the farmers. “This will enable smooth availability of all P&K fertilizers to farmers at subsidized/affordable prices during Rabi 2022-23 and will support the agriculture sector. The volatility in international prices of fertilizers and raw materials has been largely absorbed by the central government, a government release said.