Cabinet approves Nutrient Based Subsidy rates for P&K fertilizers; net subsidy of Rs 28,655 crore for rabi season

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for Phosphatic & Potassic (P&K) Fertilizers for the year 2021-22(from 1st October, 2021 to 31st March, 2022).

As per the information provided by the government the approval has been made for an additional subsidy of Rs 28,655 crore on P&K fertilizers.

See Zee Business Live TV Streaming Below:

The approved rates for Nutrient Based Subsidy (NBS) shall be as under:

N (Nitrogen): Rs 18.789, Per Kg Subsidy rates
P(Phosphorus): Rs 45.323, Per Kg Subsidy rates
K(Potash): Rs 10.116, Per Kg Subsidy rates
S(Sulphur): Rs 2.374, Per Kg Subsidy rates

Also, as per the information, total amount of rollover will be Rs 28,602 crore. Special one-time package for additional subsidy on DAP at the tentative additional costof Rs 5,716 crore. Special one-time package for additional subsidy on three most consumed NPKs gradesviz. NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16 at the tentative cost of Rs 837crore. Total subsidy requiredwill be 35,115 crore.

Here is all you need to know:

1. Financial Implications: Net subsidy required for Rabi 2021-22 after deducting savings will be Rs 28,655 crore.

2. Benefits: This will enable smooth availability of all P&K fertilizers to the farmers during Rabi Season 2021-22 at the subsidized /affordable prices of fertilizers and support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades.

lt will give Rs 438 per bag benefit on Di-Ammonium Phosphate (DAP) and Rs 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 & NPK 12-32-16 so as to maintain prices of these fertilizers affordableto the farmers.

3. Implementation strategy and targets: The subsidy on P&K fertilizers will be provided based on the NBS rates approved by the CCEA to ensure smooth availability of these fertilizers to the farmersat affordable prices.

4. Background: Government is making available fertilizers, namely Urea and 24 grades of P&K fertilizers tofarmers at subsidized prices through fertilizer manufacturers/ importers. The subsidy on P&Kfertilizers is being governed by NBS Scheme w.e.f. 01.04.2010.

The subsidy would be released to fertilizer companies as per above rates so that they can make available fertilizers to farmers at an affordable price than it would have been otherwise.