Cabinet Approves A Slashed Rs. 22,303 crore Fertiliser Subsidy For Rabi Season as International prices Lowered (Image: Rabi crop/Pixabay)
The Cabinet has approved Rs.22,303-crore subsidy for phosphatic and potassic fertilizers for the Rabi season. Though the amount cleared this year is less than that of last year, the government guaranteed that the farmers would be protected as the international fertiliser prices have loosened, bringing down the need for heavy support.
The Cabinet also approved amount for Nitrogen, Phosphorus and Potassium (NPK), under the nutrient-based subsidy (NBS) scheme. The scheme sets the subsidies, except for Urea. The subsidy amount is decided on an annual basis. During last year’s Rabi season, the approved amount under NBS was Rs. 51,875 crore, which was including the provision for indigenous fertilizers through freight subsidy, reported the mint.
The Minister of Information and Broadcasting, Anurag Thakur said after the cabinet meeting that, “the subsidy will continue because the government does not want any increase in the international fertilizer prices to affect farmers of the country. For the last two years, the government has continued to provide more subsidy to the farmers.” The minister also added that, “the subsidy will ensure that farmers get fertilizers at last year’s prices.” This was added as as a response to a query on the government slashing the amount when the international prices have gone down.
Rabi sowing takes place from October to December and is harvested in April-June. Wheat, barley, mustard, chana, masur, peas, potato, tomato, beetroot, cabbage, garlic, onion, cumin, coriander, linseed, sunflower and cauliflower are some crops of Rabi season.
The NBS is lower than the previous year, this year set nitrogen for Rs. 47.2 per kg which was Rs. 98, Phosphorus for Rs. 20.82 per kg, which was Rs. 66.93, Potash for Rs. 2.38 per kg which was at Rs. 23.65 and Sulphur for Rs. 1.89 which was at Rs. 6.12, the mint said.
An official statement said that the subsidies will be given to the fertiliser companies according to the notified and approved rates, so that, farmers could get fertilisers at reasonable prices. It also added that, affective and efficient use of resources have been undertaken as the cabinet decision explains the subsidy rates on phosphatic and potassic fertilizers.
An additional subsidy of Rs 45 per bag has been added to Di-ammonium phosphate or DAP, so that the cost would be similar to last year’s Rs.1,350 per bag. As is the case of muriate of Potash, which would come at Rs.1,655 per bag, which is less than Rs. 1,700 per bag. NPK would carry the same rates at Rs. 1,470 per bag, while SSP or single super phosphate or SSP would come at Rs. 500, with continued freight subsidy, the Minister said.
In the month of September, the prices of fertilisers had a mixed trend. The global average prices for urea went up to $570 per tonne in September from $563 a tonne in August. In the case of DAP, prices went down from $730 to $703 along with Potash prices, at $508 from $518.
The year 2022-23 saw a record of Rs. 2.25 trillion for fertiliser subsidies. In 2023-24, the allocation was Rs. 1.75 trillion for fertiliser subsidy. The initial five months had an allocation of 55 percent of the amount, Rs. 108 trillion for 2023-24 Kharif season which included urea subsidy of Rs. 70,000 crore and DAP and other fertiliser subsidies at Rs. 38,000 crore.
