Union Cabinet approves nutrient-based subsidy for P&K fertilisers

The Union Cabinet on Wednesday approved 'Deep Ocean Mission' for sustainable use of ocean resources and nutrient-based subsidy.

Union Cabinet approved the proposal of the Department of Fertilizers for fixation of 'Nutrient Based Subsidy Rates' for Phosphatic and Potassic (P&K) Fertilizers for the year 2021-22, said Chemicals and Fertilizers Minister Mansukh Mandaviya.

"The subsidy is released to fertilizer companies as per NBS rates so that they can make available fertilizers to farmers at affordable price. In last few months, the international prices of raw materials of DAP and other P&K fertilizers have increased sharply. Prices of finished DAP etc. 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 fertilizers (including DAP)," said Cabinet Committee on Economic Affairs in a statement. 

Government will spend additional Rs 14,000 crore on increase subsidy support for DAP fertiliser.

"Considering this crisis of pricing of DAP in India as an extraordinary situation & distress for the farmers, Gol has increased the subsidy rates under NBS Scheme as a special package for farmers in such a way that MRP of DAP (including other P&K fertilisers) can be kept at the last year's level till the present Kharif season. This has been done as one-time measure as COVID -19 package to reduce the hardships of farmers. As anticipated that international prices may come down in few months, Gol may review the situation accordingly and decide regarding subsidy rates at that point of time. The estimated additional subsidy burden for such an arrangement will be around Rs 14,775 crore," added CCEA.

Union Cabinet also approved the proposal of the Ministry of Earth Sciences on 'Deep Ocean Mission', with a view to explore deep ocean for resources and develop deep-sea technologies for sustainable use of ocean resources, said Union Minister Prakash Javadekar at a press briefing in New Delhi.

"So far, there has been no survey of minerals in deep ocean. An off-shore centre to look for thermal energy will be set up," said Javadekar.

Amid the buzz of an imminent reshuffle in the Union Cabinet, the Cabinet Committee on Economic Affairs (CCEA) and Union Cabinet meetings were held on Wednesday.

The buzz that was going on for quite sometime intensified after series of meetings took place between Prime Minister Narendra Modi and Home Minister Amit Shah and BJP National President JP Nadda in the national capital. Sources stated Nadda had been frequently visiting PM's residence for a month now.

Earlier sources in the Bharatiya Janata Party (BJP) stated that the party is likely to accommodate a few of its prominent leaders and National Democratic Alliance (NDA) members in the Narendra Modi Cabinet soon. It has been two years since NDA came back to power in 2019.