Government set to raise the fertilizer subsidy

Share with Your Friends

Government set to raise the fertilizer subsidy

Recently it has been decided that the government will increase the subsidy on fertilizers to ensure fair price for the farmers.

An inter-ministerial committee has recommended revision of nutrient-based subsidy rates for nutrients such as nitrogen, phosphorus, potassium and sulphur for the Kharif season 2022.

The revision of subsidy has been recommended on the basis of the average international prices of fertilizers in March 2022 as a special case this year.

In April 2022, the international prices of urea have increased by 145% as compared to April 2021.

The prices of DAP (Di-Ammonium Phosphate) have increased by 66%, while the prices of MOP (Muriate of Potash) have increased by 116 per cent as compared to the corresponding month of last year.

In the Union Budget 2022-23, the government has allocated a combined amount of Rs 1.09 lakh crore for fertilizer subsidy. Of this, Rs 42,000 crore has been allocated for phosphatic and potassic (P&K) fertilizers, and Rs 67,187 crore for urea. This amount is less than last year’s budget allocation of Rs 1.62 lakh crore.

Reasons for increased fertilizer prices:

  • The prices of raw materials such as ammonia and phosphoric acid have increased;
  • The Russo-Ukraine War has led to an increase in fuel prices (oil and gas prices);
  • Due to strict export control by China on DAP etc., there has been a decrease in the finished products in the world market etc.

Importance of increasing fertilizer subsidy:

  • Farmers will get relief.
  • This step is important for importers to enter into agreements.
  • This will help in alleviating the worry of food inflation.

India’s fertilizer imports:

India imports about 25% of its consumption of urea, about 95% of phosphates and about 100% of potash fertilizers.

Source – The Hindu

Download Our App


Was this article helpful?

Leave a Comment

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

April 2023
« Mar    

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Hi, there

Welcome to Youth Destination IAS

We have a perfect gift For you:
Open Access to the Youth Destination Library