Government approves nutrient-based subsidy rates for P&K fertilizers

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Government approves nutrient-based subsidy rates for P&K fertilizers

Recently the Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic P&K fertilizers for the year 2021-22.

Government of India is providing Urea and 24 grade P&K fertilizers (including Diammonium Phosphate) at subsidized prices to the farmers through fertilizer manufacturers/importers.

It is to be noted that this subsidy is provided under Central Sector Schemes (Fully Funded by the Centre). The subsidy on P&K fertilisers is governed by the NBS scheme since the financial year 2010.

Each grade of subsidized P&K fertilisers is provided with a fixed amount (fixed on an annual basis) as per the nutrient content.

This subsidy is given to fertilizer companies, which in turn provide P&K fertilizers to farmers at a subsidized maximum retail price (MRP).

Subsidy for other fertilizers

Urea: The difference between the distribution cost of fertilizers on the farm and the net market realization by the urea units is provided as subsidy to the manufacturer/importer. Therefore, it also includes freight subsidy for the movement of urea across the country.

Neem Coated Urea Policy, 2015 mandates neem coating of 75% of the urea produced by domestic firms.

Under City Compost Policy, 2016, financial assistance is provided to fertilizer companies for marketing and promotion of City Compost.

Source – The Hindu

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