Centre Approves Extension of DAP Special Package for Farmers
The Union Cabinet, led by Prime Minister Narendra Modi, has approved an extension of the special package for Di-Ammonium Phosphate (DAP) fertiliser. This decision aims to ensure farmers continue to have access to DAP at affordable prices. The extended package, which adds Rs 3,500 per metric tonne (MT) beyond the Nutrient-Based Subsidy (NBS), will remain in place from 1 January 2025 until further notice.
This measure comes with an estimated cost of up to Rs 3,850 crore, highlighting the government’s commitment to supporting farmers despite global market challenges and geopolitical pressures.
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Di-Ammonium Phosphate is a crucial fertiliser for Indian farmers. Under the NBS scheme, introduced in April 2010, 28 varieties of phosphatic and potassic (P&K) fertilisers are made available at subsidised rates. In July 2024, the government had approved a special one-time package for DAP, effective from 1 April 2024 to 31 December 2024. This package provided additional relief of Rs 3,500 per MT and cost the government around Rs 2,625 crore.
With the latest extension, the total budget allocated for this initiative since April 2024 exceeds Rs 6,475 crore. This ensures that DAP fertiliser prices remain unchanged for farmers during the Kharif and Rabi seasons of 2024–2025.
The extended package guarantees DAP availability at subsidised rates, helping farmers maintain productivity without financial strain. The subsidy will continue until further orders, ensuring consistent supply and stability in the agricultural sector.
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Di-Ammonium Phosphate (DAP) is a versatile fertiliser widely used across agriculture. It supports cereals like wheat, rice, and maize by enhancing root growth and grain yield, and aids pulses in nitrogen fixation. Oilseeds such as soybean and sunflower benefit from improved flower and seed development, while vegetables like potatoes and tomatoes achieve rapid growth and quality produce. DAP boosts fruit crops like mangoes and apples during flowering and fruit setting, and supports cash crops like sugarcane and cotton for higher output. It also aids forage, plantation, and horticultural crops by promoting robust growth, making it essential for diverse farming needs.
