Amidst worldwide inflation, Cabinet approved subsidy for fertilisers
In the midst of increasing worldwide costs, the Union Cabinet approved a 22,303-crore subsidy for phosphatic and potassium (P&K) fertilisers, as well as nutrient-based subsidy (NBS) rates for nitrogen, phosphorus, and potassium (NPK) fertilisers, for the 2023-24 Rabi season.
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According to Union I&B Minister Anurag Thakur, the subsidy on P&K fertilizers will be based on approved rates to ensure enough availability and affordable costs for farmers.
He said that the cabinet's decision has two big advantages. For instance, it would ensure that P&K fertilizers are cheap to farmers throughout the ongoing Rabi season, which began this month. Second, it rationalizes the P&K fertilizer subsidy, ensuring that government resources are used effectively and efficiently.
Farmers will receive nitrogen fertiliser at a subsidised rate of 47.02 per kg, phosphorus fertiliser at a discounted rate of 20.82 per kg, and potassium fertiliser at a subsidised rate of 2.38 per kg.
The government has set aside 38,000 crore in subsidies for the 2023-24 kharif season, which concluded in September.
Since 1 April 2010, the NBS system, which oversees the subsidy on P&K fertilisers, has been vital in assuring farmers' access to key nutrients at subsidised costs.
The cabinet resolution will have the dual benefit of ensuring the availability of P&K fertilisers to farmers at subsidised, affordable, and fair prices throughout the Rabi season, as well as the rationalisation of P&K fertiliser subsidies, according to Thakur.
The government is committed to making P&K fertilisers affordable to farmers. In light of current trends in international fertiliser and input prices such as urea, DAP, MOP, and sulphur, the government has decided to approve the NBS rates for Rabi 2023-24, which will be applicable from 01.10.23 to 31.03.24 on phosphatic and potassic (P&K) fertilisers.
Thakur stated that the subsidy will be offered to fertiliser firms at approved and notified rates in order to make fertilizers available to farmers at reasonable pricing.
The government set aside Rs.1.75 trillion for fertiliser subsidies in the budget year 2023–24, and 55% of that amount was used in the first five months.
The government offers 25 grades of P&K fertilisers to farmers at discounted rates during the rabi and kharif seasons through fertiliser producers or importers.
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