New Delhi, April 27 (Agency) The Union Cabinet today approved subsidy to the tune of over Rs 60 thousand crore for phosphatic and potassic fertilisers, including Di-Ammonium Phosphate for Kharif Season – 2022, from April 1, 2022 to September 30, 2022. The subsidy will cost around Rs 60,939.23 Crores including support for indigenous fertilizer (SSP) through freight subsidy and additional support for indigenous manufacturing and imports of DAP, a statement said. An official statement said the increase in the international prices of Di-ammonium phosphate (DAP) and its raw materials have been primarily absorbed by the Union Government.
“The Union Government has decided to provide a subsidy of Rs 2501 per bag on DAP instead of the existing subsidy of Rs 1650 per bag which is a 50 percent increase over last year’s subsidy rates. The increase in the prices of DAP and its raw material is in the range of approximately 80 percent. It will help farmers to receive notified P&K fertilizers on subsidized, affordable and reasonable rates and support the agriculture sector,” the statement said. The subsidy on P&K fertilizers will be provided based on the NBS rates for Kharif season -2022 to ensure smooth availability of these fertilizers to the farmers at affordable prices. Th move has been taken in view of steep increase in the international prices of fertilizers and inputs like Urea, DAP, MOP and Sulphur. “Government has decided to absorb the increased prices by increasing subsidy on P&K fertilizers including DAP. The subsidy would be released to fertilizer companies as per approved rates so that they can make available fertilizers to farmers at an affordable price than it would have been otherwise,” the statement added.