New Delhi [India], June 16 (ANI): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilizers for the year 2021-22 (till the present season).
As per the official release by the Cabinet Committee on Economic Affairs (CCEA), the Government of India is making available fertilizers, namely Urea and 22 grades of P&K fertilizers (including DAP) to farmers at subsidized prices through fertilizer manufacturers/ importers.
The subsidy on P&K fertilizers is being governed by the NBS Scheme with effect from April 1, 2010. In accordance to its farmer-friendly approach, the Government is committed to ensure the availability of P&K fertilizers to the farmers at affordable prices. The subsidy is released to fertilizer companies as per NBS rates so that they can make available fertilizers to farmers at affordable price, the release said.
"In the last few months, the international prices of raw materials of Diammonium phosphate (DAP) and other P&K fertilizers have increased sharply. Prices of finished DAP etc in the international market have also increased. Despite this sharp increase, DAP prices in India were initially not increased by the companies however, some companies increased the DAP price in the beginning of this financial year."
On the pricing front of DAP, the ministry said that the Central government has already asked all the fertilizer companies to sell their old stocks of DAP, etc at the old prices only.
"Additionally, it was agreed by the Government that the country and its citizens (including farmers) are passing through unprecedented times due to a sudden surge in the second wave of the COVID pandemic. Gol has already announced various special packages considering the hardships faced by the people during the COVID-19 pandemic," it said.
"In a similar manner, considering this crisis of pricing of DAP in India as an extraordinary situation & distress for the farmers, Gol has increased the subsidy rates under NBS Scheme as a special package for farmers in such a way that MRP of DAP (including other P&K fertilizers) can be kept at the last year's level till the present Kharif season. This has been done as a one-time measure as COVID -19 package to reduce the hardships of farmers," it added.
As anticipated that international prices may come down in few months, the Government of India may review the situation accordingly and decide regarding subsidy rates at that point of time, read the release.
The estimated additional subsidy burden for such an arrangement will be around Rs 14,775 crore. (ANI)