Sources said total fertiliser subsidies would cross Rs 1 lakh crore this fiscal year. (Representational)New Delhi: The government today announced a net subsidy of Rs 28,655 crore on phosphatic and potassic fertilisers for the October-March period of this fiscal year to ensure that farmers get nutrients at affordable prices during the rabi sowing season.The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Nutrient Based Subsidy (NBS) rates for phosphatic and potassic fertilisers for October 2021 to March 2022 period. Rabi (winter-sown) season starts in October.Under the NBS, the per kg subsidy rates of N (nitrogen) has been fixed at Rs 18.789, P (phosphorus) Rs 45.323, K (potash) Rs 10.116 and S (sulphur) Rs 2.374, according to an official statement.The NBS rate, which was hiked in June for kharif season (April-September), has been extended till March 2022, according to sources.Although the NBS rate has not been increased, sources said that the government ,through a special one-time package, has provided additional subsidy of around Rs 6,500 crore on DAP (Di-Ammonium Phosphate) and three other NPK fertilisers to maintain retail prices.After urea, DAP is most widely used by farmers.According to an official statement, the “total amount of rollover will be Rs 28,602 crore”.The government said it has also provided a special one-time package for additional subsidy on DAP at the tentative additional cost of Rs 5,716 crore.A 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 have been provided at Rs 837 crore cost.The total subsidy required will be Rs 35,115 crore, the statement said.The CCEA also approved the inclusion of potash derived from molasses (0:0:14.5:0) under the NBS Scheme.”Net subsidy required for Rabi 2021-22 after deducting savings will be Rs 28,655 crore,” as per the statement.In June also, the CCEA had raised the subsidies for DAP and some other non-urea fertilisers by Rs 14,775 crore.The government had allocated nearly Rs 79,600 crore for fertiliser subsidies in the 2021-22 Budget and the figures could rise after the provisions of additional subsidies.Sources said the total fertiliser subsidies would cross Rs 1 lakh crore this fiscal year.Listing the benefits, the government on Tuesday said the additional subsidy would enable the smooth availability of all phosphatic and potassic fertilisers to the farmers during rabi season 2021-22 at subsidised/affordable prices.”It will give Rs 438 per bag benefit on Di-Ammonium Phosphate (DAP) and Rs 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 & NPK 1 2-32-16 so as to maintain prices of these fertilisers affordable to the farmers,” the statement said.In June, the government had increased the subsidy on DAP by 140 per cent to Rs 1,200 per bag (of 50 kg each) to ensure that farmers continue to get this important fertiliser at an affordable rate despite the rise in global prices.The government is making available fertilisers, namely urea and 24 grades of phosphatic and potassic fertilisers to farmers at subsidised prices through manufacturers/ importers.The subsidy on P&K fertilisers is being governed by NBS Scheme with effect from April 2010.In the case of urea, the Centre has fixed the maximum retail prices and reimburses the difference between the MRP and production cost in form of subsidy.(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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