Nutrient Based Subsidy (NBS) Rates Approved for Fertilizers
Recently the Cabinet approved Nutrient Based Subsidy (NBS) for Phosphate and Potash (P&K) fertilizers containing nutrients like Nitrogen (N), Phosphorous (P), Potash and Sulfur (S) for Rabi season 2022-23. has been approved.
- The decision of the cabinet will help it to tide over the volatility in international prices of fertilizers and raw materials.
- In addition, it will ensure easy availability of fertilizers to the farmers at subsidized/affordable prices.
- Commercial prices of fertilizers have almost doubled due to the logistics problem caused by the Covid pandemic as well as the Ukraine-Russia conflict.
- The government is providing fertilizers at subsidized prices to the farmers through fertilizer manufacturers/importers. These include urea and 25 grade fertilizers of P&K.
- The subsidy on P&K fertilizers is being governed by the NBS scheme.
Nutrient Based Subsidy (NBS)
- It was launched in the year 2010 in continuation of the earlier Concession Scheme (1992).
- Fertilizers containing primary nutrients (NPK and S) have been included in this scheme. Also, all types of fertilizers containing secondary and micronutrients (except S) are also covered.
- The subsidy rates are decided on the recommendation of the Inter-Ministerial Committee. This subsidy is released directly to the fertilizer companies.
- Companies provide fertilizers to farmers at affordable prices.
Government’s initiative to reduce the burden of subsidy
- Production of High Efficiency Nano Urea (Liquid) Fertilizer has been started.
- One Nation, One Fertilizer (ONOF) scheme has been announced.
- Soil Health Card scheme has been started for efficient use of fertilizers.
Source – The Hindu
