DAP costs have been raised by Rs 150 per bag earlier this month, from Rs 1200 to Rs 1350, by fertilizer corporations.





Due to the continuing Russia-Ukraine disaster, the Centre yesterday granted a subsidy for non-urea fertilizers price Rs 60,939.23 crore for the primary six months of this fiscal yr. Companies would have the ability to proceed supplying vital soil vitamins to farmers at cheap costs on account of the change.












For your entire FY-23, that is over 45.23 % greater than the Budget Estimates for non-urea fertilizers. Companies would have the ability to promote one bag of Di-Ammonia Phosphate (DAP) for Rs 1350 after yesterday’s assist because the Centre will take in the remaining value, estimated to be roughly Rs 2501, as a subsidy.

Until final yr, the per-bag DAP subsidy was Rs 1,650, representing an virtually 50% enhance in FY-23. DAP costs have been raised by Rs 150 per bag earlier this month, from Rs 1200 to Rs 1350, by fertilizer corporations.

Increased costs for NPKS ranged from Rs 20 to Rs 110 per 50-kilogram bag, relying on the grade. “After today’s subsidy support, most companies will be able to maintain their price hikes. If input costs had continued to rise, they would have had to raise DAP and NPKS prices even higher,” a senior trade official mentioned.












After urea, DAP is the second most generally used fertiliser within the nation when it comes to quantity.  The subsidy charges for different advanced fertilisers, resembling numerous grades of NPKS, SSP, and MOP, have been calculated utilizing the NBS system. The urea subsidy for the fiscal yr 2022-23 remains to be ready.

The subsidy charges for different advanced fertilisers, resembling numerous grades of NPKS, SSP, and MOP, have been calculated utilizing the NBS system. The urea subsidy for the fiscal yr 2022-23 remains to be pending.

According to the FY23 Budget Estimates, the subsidy allowed for each DAP and NPKS (totally different grades) fertilisers is over 45.23 per cent increased than the subsidy allotted for non-urea fertilisers.

So, the Central authorities had offered a subsidy of Rs 42,000 crore for non-urea fertilisers within the Budget for your entire FY-23, however in as we speak’s choice, it has allotted a further Rs 19,000 crore, however only for the primary six months of this monetary yr till September.












The NBS converts the per-kg subsidies for the vitamins N, P, Ok, and S into per-tonne subsidies for the assorted P&Ok fertilizers lined by the NBS. The authorities broadcasts a set quantity of subsidy (in Rs per kg) for vitamins resembling Nitrogen (N), Phosphate (P), Potash (Ok), and Sulphur (S) on an annual foundation beneath the NBS, which has been in impact since April 2010.

The Centre units most retail pricing for urea and reimburses the distinction between the utmost retail value and the manufacturing value as a subsidy.

Meanwhile, because the Russia-Ukraine battle, urea manufacturing prices have elevated because of excessive fuel costs, whereas non-urea fertilizer costs have been negatively impacted because of a shortage of key uncooked supplies and completed merchandise.












The subsidy required for the urea sector may climb by about Rs 4,500-5,000 crore for each $1/MMBtu enhance in pooled fuel value, in line with score company ICRA. Even whereas corporations not too long ago raised pricing in retail marketplaces for non-urea fertilizers, it was not sufficient to pay their excessive manufacturing prices.











First printed on: 28 Apr 2022, 12:29 IST



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