New Delhi: From October to March in this fiscal year, the government has announced a net subsidy of Rs 28,655 crore on phosphatic and potassic fertilizers. This is to ensure that farmers have access to nutrients at a reasonable cost during the rabi planting season. In October, the Rabi (winter-sown) season begins.
The National Fertilizer Bill (NBS) was extended until March 20, 2022. In June, the NBS rate was raised for the Kharif season (April-September). According to sources, the government has offered an additional subsidy on DAP and other NPK fertilizers worth roughly Rs 6,500 crore.
The CCEA has given its approval for molasses-derived potash (0:0:14.5:0) to be included in the NBS Scheme. A total subsidy of Rs 35,115 crore will be required. Additionally, a special one-time package for additional DAP subsidy has been granted.
The CCEA increased subsidies for DAP and other non-urea fertilizers by Rs 14,775 crore in June. “After deducting savings, the net subsidy required for Rabi 2021-22 will be Rs 28,655 crore,” the government stated.
The government will provide a subsidy of Rs 438 per bag on Di-Ammonium Phosphate (DAP) and a bonus of Rs 100 per bag on NPK 10-26-26, NPK 20-20-0-13, and NPK 1 2-32-16. With effect from April 2010, the NBS Scheme governs the subsidy on P&K fertilizers.