Govt okays subsidy rates for P&K fertilisers for FY21; estimated subsidy outgo at over Rs 22K cr

The government on Wednesday approved nutrient-based subsidy rates for phosphatic and potassic (P&K) fertilisers for the current financial year with an estimated burden of Rs 22,186 crore on the central exchequer.

"The Cabinet approves fixation of nutrient-based subsidy rates for phosphatic and potassic (P&K) fertilisers for the year 2020-21; expected expenditure for release of subsidy on P&K fertilizers during 2020-21 will be Rs 22,186.55 crore," K S Dhatwalia, director general of Press Information Bureau, said in a tweet.

The subsidy on P&K fertilisers is being governed by the nutrient-based subsidy (NBS) scheme with effect from April 2010.

The government is making available fertilisers, namely urea and 21 grades of P&K fertilisers to farmers at subsidised prices through manufacturers/importers.

In case of urea, the government fixes the maximum retail price (MRP). The difference between the production cost and the MRP is reimbursed to manufacturers.