NBS Rabi-2022: Govt approves ₹51,875 crore subsidy for phosphatic and potassic fertilizers

Fertilizer Subsidy Scheme; Nutrient Based Subsidy (NBS) policy: Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved an additional ₹51,875 crore subsidy for phosphatic and potassic (P&K) fertilizers for the rabi or winter-sown season. This comes amid high global fertilizer prices.

"This will enable smooth availability of all P&K fertilizers to the farmers during Rabi 2022-23 at the subsidized / affordable prices of fertilizers and support the agriculture sector.  The volatility in the international prices of fertilizers and raw materials has been primarily absorbed by the Union Government," said the government release.

According to the press release, the government is providing farmers with urea and 25 grades of P&K fertilizers at reduced prices through fertilizer importers and producers.

The Nutrient Based Subsidy (NBS) policy came into effect on 1 April 2010 and will remain enforced until 31 March 2023.

According to the NBS policy, the government annually announces a fixed rate of subsidy (in terms of per kg basis) on the nutrients-- Nitrogen (N), Phosphate (P), Potash (K), and Sulphur (S).

For the various P&K fertilizers covered by the policy, the per-kilogram subsidy rates for nutrients are converted into per-tonne subsidies.

"The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f. 01.04.2010", the cabinet added.

The government has decided to absorb the additional costs by increasing the subsidy on P&K fertilizers, especially Di-ammonium Phosphate (DAP), in light of the sharp rise in the international prices of fertilizers and inputs such as urea, DAP, Muriate of potash (MOP), and Sulphur.

The subsidy would be released to fertilizer companies as per approved rates so that they can make fertilizers available to farmers at an affordable price, the release further added. 

Click Here For Latest Updates On Stock Market | Zee Business Live