Cabinet nod for Rs 24,420 crore subsidy for P&K fertilisers for 2024 kharif season

New Delhi: The government on Thursday announced a Rs 24,420 crore subsidy on Phosphatic and Potassic (P&K) fertilisers for the kharif season and said the farmers will continue to get key soil nutrient DAP at Rs 1,350 per quintal.

Along with DAP (Di-ammonium Phosphate), the government asserted that retail prices of other major P&K fertilisers would remain stable.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal of the Department of Fertilisers for fixing the Nutrient-Based Subsidy (NBS) rates for the kharif season 2024-25 (April 1 to September 30) on P&K fertilisers.

Prime Minister Narendra Modi said that the government is committed to the welfare of farmers. With the increase in fertilizer subsidy for the Kharif season of 2024, they will be able to get fertilizers at concessional rates, while the reduction in agricultural costs will reduce the burden on their pockets.

Briefing reporters, I&B Minister Anurag Thakur said, "A nutrient-based subsidy of Rs 24,420 crore on P&K fertilisers has been approved for the kharif season starting April 1 till September 30."

The minister said that the subsidy on Nitrogen (N) has been fixed at Rs 47.02 per kg, phosphatic (P) at Rs 28.72 per g, potassic (K) at Rs 2.38 per kg, and Sulphur (S) at Rs 1.89 per kg for 2024 kharif season.

In fact, the subsidy on phosphatic fertilisers has been increased to Rs 28.72 per kg for the 2024 kharif season from Rs 20.82 per kg in the 2023 rabi season. However, the subsidy on nitrogen (N), potassic (K) and Sulphur (S) has been kept unchanged for 2024 kharif season.

"With this subsidy, DAP which is sold currently at Rs 1,350 per bag (50 kg), will continue to be available at the same rate in the upcoming 2024 Kharif season," the minister said.

He also said Muriate of Potash (MoP) will also continue to be available at Rs 1,670 per bag, while NPK will be available at Rs 1,470 per bag.

In order to reduce the import dependence on DAP, the cabinet also approved the inclusion of three new fertiliser grades under the NBS scheme.

The subsidy would be provided to the fertiliser companies as per approved and notified rates so that fertilisers are made available to farmers at affordable prices.

The government is making available 25 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by the NBS scheme since 2010.

In accordance with its farmer-friendly approach, the government is committed to ensure the availability of P&K fertilisers to the farmers at affordable prices, the minister added.

As per the official data, the government has provided nearly Rs 1.71 lakh crore as fertilisers subsidy till January in this fiscal year.

For the 2024-25 fiscal, the government has allocated fertiliser subsidy of Rs 1.64 lakh crore as against the revised estimates of Rs 1.89 lakh crore for the ongoing financial year.