The government on Wednesday extended additional subsidy on di-ammonium phosphate (DAP) beyond December 31, 2024, to help maintain retail prices of this key fertiliser at ₹1,350 per bag of 50 kg -- a move that could cost the exchequer up to ₹3,850 crore.
Last year, the Centre announced a one-time special package on DAP at ₹3,500 per tonne, valid from April 1, 2024, to December 31, 2024, with a financial implication of ₹2,625 crore to keep prices under check. The package was over and above the nutrient-based subsidy (NBS) fixed by the government on non-urea nutrients.
On Wednesday, the Union Cabinet -- chaired by Prime Minister Narendra Modi -- approved the proposal for an extension of a one-time special package on DAP at the rate of ₹3,500 per tonne for the period from January 1, 2025, till further orders.
Also read | Odisha announces 50% subsidy for cold storage of potatoes
The decision has been taken to "ensure sustainable availability of DAP at affordable prices to the farmers", an official statement said.
{{/usCountry}}The decision has been taken to "ensure sustainable availability of DAP at affordable prices to the farmers", an official statement said.
{{/usCountry}}The special package on DAP will be provided over and above the approved NBS (nutrient-based subsidy) to ensure the smooth availability of DAP fertiliser to the farmers at an affordable price.
Briefing media, Information and Broadcasting (I&B) Minister Ashwini Vaishnaw informed that farmers will continue to get DAP at ₹1,350 per bag and the extra burden will be borne by the central government.
Also read | Farmers push for SC’s help after parliamentary standing committee backs MSP law
"One-time special package up to ₹3,850 crore is approved for DAP fertiliser," he added.
He pointed out that the global market prices of DAP are volatile on geopolitical concerns.
The Centre provides 28 grades of P&K (phosphatic and potassic) fertilisers to farmers at subsidised prices through fertiliser manufacturers/importers.
The subsidy on P&K fertilisers is governed by the NBS Scheme, with effect from April 1, 2010.
"Continuing top most priority in keeping farmers' welfare in firm focus, Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertiliser unchanged," the statement said.
In spite of geopolitical constraints and volatility of global market conditions, the government said it has kept its commitment towards a farmer-friendly approach by ensuring the availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25.
The Modi government has provided ₹11.9 lakh crore fertiliser subsidy during the 2014-24 period, which is more than double the subsidy of ₹5.5 lakh crore for the 2004-14 period.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.