To absorb price rise, Centre hikes fertiliser subsidy

New Delhi, April 27

The Union Cabinet today approved a subsidy worth Rs 60,939.23 crore for nutrient-based phosphatic and potassic (P&K) fertilisers, including DAP, for the first six months of this financial year, as part of efforts to provide soil nutrients to farmers at affordable rates.

DAP will continue to cost Rs 1,350/bag

• No trickle-down effect of subsidy hike for farmers
• They will continue to get DAP at Rs 1,350 per bag of 50 kg
• Subsidy saves them from further hike in DAP price
• Punjab to sell 70% DAP via cooperative societies to check black marketing

A decision was taken at the meeting of the Union Cabinet, chaired by PM Narendra Modi. Union Minister Anurag Thakur said the Cabinet had approved Rs 60,939 crore subsidy on P&K fertilisers for the kharif season against the subsidy of Rs 57,150 crore on these nutrients for the entire fiscal last year. He said the subsidy on DAP (di-ammonium phosphate) had been increased to Rs 2,501 per bag from Rs 512 per bag in 2020-21 and the farmers would continue to get the DAP at Rs 1,350 per bag.

He said even as the prices of fertilisers had increased sharply in the international market, the government had ensured that the farmers did not have to bear the burden. The government said, “The subsidy will be released to fertiliser companies as per approved rates so that they can make soil nutrients available to farmers at affordable prices.”

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