Cabinet approves nutrient-based subsidy rates for P&K fertilisers for Rabi 2021-22

Cabinet approves nutrient based subsidy rates for P&K fertilisers for Rabi 2021-22
This will enable smooth availability of all P&K fertilisers to the farmers during Rabi season 2021-22 at the subsidised and affordable prices and support the agricultural sector by continuing the present subsidy levels

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has, on Tuesday, approved the proposal of the Department of Fertilizers for the fixation of nutrient-based subsidy rates for P&K fertilisers for the year 2021-22 (from 1st October, 2021 to 31st March, 2022). The approved rates for nutrient-based subsidy (NBS) shall be as under:

Per Kg subsidy rates (in Rs.)

N (Nitrogen)P (Phosphorus)K (Potash)S (Sulphur)
18.78945.32310.1162.374

 

  • The total amount of Rollover will be Rs. 28,602 crore.
  • Special one-time package for additional subsidy on Diammonium phosphate (DAP) at the tentative additional cost of Rs. 5,716 crore.
  • Special one-time package for additional subsidy on three most consumed NPKs grades viz. NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16 at the tentative cost of Rs. 837crore. The total subsidy required will be Rs 35,115 crore.
  • The CCEA also approved the inclusion of potash derived from molasses (0:0:14.5:0) under the NBS scheme.
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Financial implications

Net subsidy required for Rabi 2021-22 after deducting savings will be Rs.28,655 crore.

Benefits

This will enable smooth availability of all P&K fertilisers to the farmers during Rabi season 2021-22 at subsidised and affordable prices and support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades.

lt will give Rs. 438 per bag benefit on Diammonium phosphate (DAP) and Rs. 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16 so as to maintain prices of these fertilisers affordable to the farmers.

 Implementation strategy and targets

The subsidy on P&K fertilisers will be provided based on the NBS rates approved by the CCEA to ensure the smooth availability of these fertilisers to the farmers at affordable prices.

Background

The government is making available fertilisers, namely urea and 24 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers and importers. The subsidy on P&K fertilisers is being governed by the NBS scheme w.e.f. April 01, 2010. The subsidy would be released to fertiliser companies as per the above rates so that they can make available fertilisers to farmers at an affordable price.

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