The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi has today approved the increased prices of Phosphatic and Potassic (P&K) fertilisers vide notification dated 20.5.2021 shall be rolled over for the whole year 2021-22 from 1.10.2021 to 31.3.2022.
The increased international prices of Diammonium phosphate (DAP) have been absorbed by the Government of India. The government has decided to increase the subsidy by Rs. 438 per bag of DAP as a special one-time package so that farmers can get DAP at the same price, the Government of India has informed.
The increased international prices of raw materials for production of the three most consumed NPK grades (10:26:26, 20:20:0:13 and 12:32:16) have been absorbed by the government by increasing subsidy by Rs. 100 per bag on these NPK grades as a special one time package so that farmers can get these fertilisers at affordable prices.
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The Central government has brought potash derived from molasses (PDM) under a nutrient-based subsidy (NBS) scheme to give a push to its manufacturing by sugar mills as a by-product. This fertiliser is known as PDM-0:0:14.5:0.
According to the government, this move is expected to reduce India’s dependence on 100 per cent import of more than 42 lakh metric tonnes (LMT) of mineral-based potash i.e. MOP which cost around Rs. 7,160 crore annually. This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs. 73 subsidy per 50 kg bag being sold at Rs 600-800 by fertiliser companies to the farmers.
It is expected that the government would spend approximately Rs. 156 crore annually as subsidy on PDM and save foreign exchange of Rs. 562 crore.