Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Fertilizers for per Kilogram rates of Nutrient Based Subsidy (NBS) for various Nutrients that is Nitrogen (N), Phosphorus (P), Potash (K) and Sulphar (S) for Phosphatic and Potassic (P&K) fertilizers for Rabi Season – 2022-23 (from 01.10.2022 to 31.03.2023).
Financial Outlay:
Subsidy approved by Cabinet for the NBS Rabi-2022 (from 01.10.2022 to 31.03.2023) will be Rs. 51,875 crore including support for indigenous fertilizer (SSP) through freight subsidy.
Benefits:
This will enable smooth availability of all P&K fertilizers to the farmers during Rabi 2022-23 at the subsidized and affordable prices of fertilizers and support the agriculture sector.
The volatility in the international prices of fertilizers and raw materials has been primarily absorbed by the Union Government.
Background:
Government is making available fertilizers, namely Urea and 25 grades for P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f. 01.04.2010.
In accordance with its farmer friendly approach, the Govt. is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices.
In view of steep increase in the international prices of fertilizers & inputs i.e. Urea, DAP, MOP and Sulphur, Government has decided to absorb the increased prices by increasing subsidy on P&K fertilizers including DAP.
The subsidy would be released to fertilizer companies as per approved rates so that they can make fertilizers available to farmers at an affordable price.