Govt approves revision in NBS rate for Rabi season, sets rate for Kharif

The Union Cabinet on Wednesday approved the revision in Nutrient Based Subsidy (NBS) rates for various nutrients i.e. Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S) for Rabi Season 2022-23 (from Jan 1, 2023, to March 31, 2023). 

The cabinet also approved NBS rates for Kharif Season, 2023 (from April 1, 2023, to September 30, 2023) for Phosphatic and Potassic (P&K) fertilisers. 

The cabinet meeting was chaired by Prime Minister Narendra Modi and the proposal of the Department of Fertilisers was given approval. According to a PIB release, the subsidy on P&K fertilisers is governed by the NBS Scheme.

The cabinet also announced that the government will also be giving a subsidy of Rs 38,000 crores for the Kharif season in 2023, with the intention of fulfilling its commitment to providing quality and subsidised P&K fertilisers to farmers.

The decision of the cabinet will have two-fold benefits- ensuring the availability of DAP and other P&K fertilisers to farmers at subsidized, affordable, and reasonable prices during the Kharif season and it will also ensure rationalisation of subsidy on P&K fertilisers.

According to a report in Moneycontrol, the cabinet also approved a Rs 1.08 trillion package for fertiliser subsidy for the Kharif season.  Out of Rs 1.08 trillion subsidy, Rs 70,000 crore is allocated for urea and Rs 38,000 crore for Di-ammonium Phosphate (DAP).

Addressing the media at the conclusion of the Union Cabinet meeting, Union Minister Mansukh Mandaviya said, "While the total subsidy amount was lower than last year, it was still higher than normal." He further added, "The situation in 2022-23 was such that fertiliser subsidy had to be increased sharply (due to the Russia-Ukraine war)."

Mandaviya also stated that the reduction in fertiliser subsidy of Rs 1.08 trillion for the Kharif season (April-September) will not lead to higher prices for the farmers.