Immunity. CCEA approves subsidy rates for P&K fertilisers

Our Bureau Updated - October 13, 2021 at 11:36 AM.

Inclusion of Potash derived from molasses under the NBS scheme also gets nod

Farm worker applying fertilizer at a paddy field on the eve of fertilizer price hike on Wednesday near Thrissur , Kerala. As on April 1,the Centre has decided to hike the maximum retail price (MRP) of urea from Rs 4,830 to Rs 5,310 a tonne and also given the go-ahead for freeing all non-urea fertilisers from MRP controls, as part of the move to usher in a Nutrient Based Subsidy (NBS) regime in the coming fiscal. At present, the MRPs of 19 fertilisers are fixed by the Centre. The Cabinet's decision would technically confer on companies the freedom to set farmgate prices in 18 out of the 19 fertilisers, with urea continuing to be subjected to MRP controls and distribution and movement controls would remain on up to 20 per cent of the production and import of these products.. Farmers may not have to suffer huge increases in prices of non-urea fertilisers following their decontrol with effect from April 1. Photo: K_K_Mustafah 31/03/2010

The Cabinet Committee on Economic Affairs has approved Nutrient Based Subsidy (NBS) rates for Phosphatic & Potassic (P&K) fertilisers for the year 2021-22 (from October 1, 2021 to March 31, 2022) with net subsidy of ₹28,655 crore for Rabi 2021-22.

The approved rates are ₹18.789 per kg for Nitrogen, ₹45.323 per kg for Phosphorous ₹10.116 per kg for Potash, ₹2.374 per kg for Sulphur, per an official release issued following the CCEA meeting on Tuesday.

A special one-time package for additional subsidy on DAP at the tentative additional cost of ₹5,716 crore and three most consumed NPKs grade at the tentative cost of ₹837 crore was also approved, increasing the total subsidy required to ₹35,115 crore, the release added.

The CCEA also approved the inclusion of Potash derived from molasses (0:0:14.5:0) under the NBS scheme.

The decision on P&K fertilisers will enable its smooth availability to the farmers during Rabi Season 2021-22 at the subsidised/affordable prices of fertilizers 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, the release said.

Published on October 12, 2021 16:11