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.
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