The Central Government has given its nod to revised Nutrient Based Subsidy rates for Phosphate and Potassic (P&K) fertilizers in the upcoming Rabi season (October-March) of 2023-24. These new rates shows a significant reduction in P&K fertilizer subsidies. The new rates will come into effect from October 1, 2023, and remain applicable until March 31, 2024. It is anticipated that an expenditure of Rs 22,303 crore will be allocated for nutrient-based subsidies during the Rabi season of 2023-24.
Information and Broadcasting Minister Anurag Thakur made this announcement, underlining the government commitment to providing affordable fertilizers to the farmers. “We anticipate an expenditure of Rs 22,303 crore as a subsidy on P&K fertilizers for the Rabi season of 2023-24,” confirmed Minister Thakur.
This announcement marks a decrease, mirroring a subsidy approval earlier in the year when the Union Cabinet endorsed a subsidy of Rs 38,000 crore for P&K fertilizers for the Kharif season of 2023-24. “Depending on international rates, the subsidy may go up or come down, but the government will not let any burden fall on farmers,” the minister said.
The Minister stated that farmers will continue to benefit from the subsidized rate of Rs 1,350 per bag (50 kg) for DAP (di-ammonium phosphate). Other fertilizers like NPK will also be available at their previous rates, with NPK at Rs 1,470 per bag and SSP (single super phosphate) at approximately Rs 500 per bag. The rates for MoP (Muriate of Potash) will be reduced to Rs 1,655 per bag from the earlier Rs 1,700 per bag.
The Cabinet has fixed the NBS rate of nitrogen (N) at Rs 47.02 per kg, phosphorus (P) at Rs 20.82 per kg, potash (k) at Rs 2.38 per kg and Sulphur (S) at Rs 1.89 per kg. For the kharif season of 2023-24, the government had a fixed per kg subsidy rate on N at Rs 76 per kg, Rs 41 per kg on P, Rs 15 per kg on K and Rs 2.8 per kg on S. In last year’s rabi season, the cabinet approved total NBS subsidies of ₹51,875 crore, including support for indigenous fertilizers through freight subsidy.
“The government is committed to ensuring the availability of P&K fertilizers to farmers at affordable prices. In view of the recent trends in the international prices of fertilizers, the government has decided to approve the NBS rates for Rabi 2023-24 on phosphatic and potassic (P&K) fertilizers. The subsidy will be provided to the fertilizer companies as per approved and notified rates so that fertilizers are made available to farmers at affordable prices,” Thakur said.
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