India approves over Rs 60,000 crore subsidy for phosphorus and potassium-based fertilisers (DAP) for April-September 2022 period

The government has given its nod to subsidy to the tune of Rs 60,939.23 crore for phosphatic and potassic fertilisers, including Di-Ammonium Phosphate (DAP), for the first six months of the current fiscal as part of its efforts to provide soil nutrients to farmers at affordable prices.

“Subsidy has been approved by the Cabinet for the NBS Kharif-2022 and will be Rs 60,939.23 crore, including support for indigenous fertiliser (SSP) through freight subsidy and additional support for indigenous manufacturing and imports of DAP,” said a press statement.

The increase in the international prices of DAP and its raw materials have been primarily absorbed by the Union government.

“The Union government has decided to provide a subsidy of Rs 2,501 per bag on DAP instead of the existing subsidy of Rs 1,650 per bag which is a 50 percent increase over the last year’s subsidy rates,” the statement said. The total cost of a DAP bag is Rs 3,851.

At a media briefing, information and broadcasting minister Anurag Thakur said the Cabinet has approved a subsidy of Rs 60,939 crore for P&K fertilisers as against the subsidy of around Rs 57,150 crore for these nutrients for the entire last fiscal.

The minister further highlighted that even as the prices of fertilisers have increased sharply in the global markets, the government has ensured that the burden has not increased for the farmers. “There will be no burden on the farmers,” he said.

“As far as the farmers are concerned, from time to time we have been giving benefits. There is a sharp increase in raw material cost, shipping cost and other components which has led to the overall price increase as far as P&K fertilisers are concerned,” he said.

According to the statement, the increase in the prices of DAP and its raw material is about 80 per cent. Moreover, the government is making available fertilisers, namely urea and 25 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers/importers. In the case of urea, the government fixes the maximum retail prices and reimburses the difference between the maximum retail price and production cost in the form of a subsidy. 

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