Most non-urea fertiliser subsidies unchanged; Rs 22875 to be spent on sops

The government on Wednesday notified the subsidy on most non-urea fertilisers and kept them unchanged from their 2018-19 levels, except for sulphur, which it raised from Rs 2.72 per kg to Rs 3.56. 

The decision will cost the exchequer Rs 22,875 crore in the 2019-20 fiscal year.  

A decision in this regard was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

“The CCEA approved NBS (nutrient-based subsidy) rates for phosphatic and potassic (P&K) fertilisers for the year 2019-20; expected expenditure during 2019-20 to be Rs 22,875 crore,” information and broadcasting minister Prakash Javadekar told the media after the meeting.

The subsidy for nitrogen has been fixed at Rs 18.90 per kg, phosphorous at Rs 15.11 per kg, potash at Rs 11.12 per kg and sulphur at Rs 3.56 per kg for the current fiscal, he said.

This will help in promoting balanced use of fertilisers, the minister added.

“Usually, the government fixed the non-urea fertiliser subsidy in the months of February and March, but this year, it has been delayed. So, in a way, it is good that big changes haven’t been made. In the case of sulphur, the subsidy component has gone up as international market rates have firmed up,” a senior industry executive said.