Great news for farmers! Govt clears nutrient based subsidy for phosphatic, potassic fertilisers

In what could be a great news for the Indian farmers, Cabinet Committee on Economic Affairs (CCEA) today gave its approval for fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) Fertilisers for the financial year 2020-21. The decision was taken by the cabinet which was chaired by Prime Minister Narendra Modi.

The approved rates for NBS are as under: -

Per Kg Subsidy rates (in Rs) are:
N - 18.789
P - 14.888
K - 10.116
S - 2.374
 
The CCEA also approved the inclusion of a complex fertiliser namely Ammonium Phosphate (NP 14:28:0:0) under the NBS Scheme, according to a government release. The expected expenditure for release of subsidy on P&K fertilisers during 2020-21 will be Rs 22186.55 cr, the release said.

The subsidy on the P&K will be provided on the subsidy rates approved by the CCEA to the fertiliser companies.

Government is making available fertilisers, namely Urea and 21 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers or importers. The subsidy on P&K fertilisers is being governed by NBS Scheme since 1 April, 2010.

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"In accordance to its farmer friendly approach, the Government is committed to ensure the availability of P&K fertilisers to the farmers on affordable price. The subsidy would be released to fertiliser companies as per above rates so that they can make available fertilisers to farmers at a cheaper price than it would have been otherwise," the release said.