 "fertiliser subsidy")
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the nutrient-based subsidy (NBS) rates for Rabi season 2023-24 on phosphatic and potassic fertilisers (from October 1, 2023 to March 31, 2024). A subsidy of Rs 47.02, Rs 20.82, Rs 2.38, and Rs 1.8 have been fixed for Nitrogen-based, Phosphatic, Potassic, and Sulphur-based fertilisers, respectively.
An expenditure of Rs 22,303 crore is expected on the NBS in the upcoming Rabi season. The media release said that the subsidy on phosphatic and potassic fertilisers will be given "to ensure smooth availability of these fertilisers to the farmers at affordable prices".
The press release also stated that the subsidy would be provided to the fertiliser companies according to approved and notified rates.
At a press conference, Information and Broadcasting Minister Anurag Thakur said the decisions are expected to entail an expenditure of Rs 22,303 crore.
"Subsidy for the Rabi season from October 1, 2023 till March 31, 2024, will be like this - for the nitrogen it will be Rs 47.2 per kg, phosphorus will be Rs 20.82 per kg, potash subsidy will be Rs 2.38 per kg and the sulphur subsidy will be Rs 1.89 per kg," he said.
"The subsidy will continue because when international prices rise, the government does not want it to impact our farmers in the country... Subsidy on Di-ammonium Phosphate (DAP) will continue...DAP will be available for Rs 1350 per bag as per the old rate. The NPK will be available at Rs 1,470 per bag," he added.
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In May, the Union Cabinet had approved the revision in NBS rates for various nutrients i.e. Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S) for Rabi Season 2022-23.
Business Standard had earlier reported that there had been a sharp fall — to the tune of almost 81 per cent — in the per kilogram subsidy for nitrogen fertiliser during April-September 2023 compared to January-March 2023. This was mainly due to a reduction in urea prices globally as well as domestically. In the case of phosphorus, the fall had been less. For potassium and sulphur, the drop had been to the tune of 61 per cent and 16 per cent per kilogram subsidy, respectively.
