Cabinet has permitted a subsidy of Rs. 60,939.23 crores for the NBS Kharif-2022 (from 01.04.2022 to 30.09.2022), which incorporates assist for indigenous fertilizer (SSP) via freight subsidy and extra assist for indigenous manufacturing and DAP imports.








Farmer Fertilizing his Field





The Union Cabinet, presided over by Prime Minister Narendra Modi, at the moment permitted the Department of Fertilizers’ proposal for Nutrient Based Subsidy (NBS) charges for Phosphatic and Potassic (P&Ok) fertilisers for the Kharif Season – 2022. (from 01.04.2022 to 30.09.2022).












Financial Implications:

Cabinet has permitted a subsidy of Rs. 60,939.23 crores for the NBS Kharif-2022 (from 01.04.2022 to 30.09.2022), which incorporates assist for indigenous fertilizer (SSP) via freight subsidy and extra assist for indigenous manufacturing and DAP imports.

Advantages:

The rise in worldwide costs for di-ammonium phosphate (DAP) and its uncooked supplies has primarily been absorbed by the Union Government. The Union Government has determined to supply a subsidy of Rs. 2501 per bag on DAP as a substitute of the present subsidy of Rs.1650 per bag, representing a 50% enhance over the earlier 12 months’s subsidy charges.

The value of DAP and its uncooked supplies has elevated by roughly 80%. It will help farmers in receiving notified P&Ok fertilizers at sponsored, inexpensive, and cheap charges, thereby supporting the agriculture sector.












Implementation Strategy & Targets:

The subsidy on P&Ok fertilizers will likely be supplied primarily based on NBS charges for the Kharif season -2022 (relevant from 01.04.2022 to 30.09.2022) to make sure that these fertilizers can be found to farmers at cheap costs.

Through fertilizer producers/importers, the federal government makes fertilizers, specifically urea and 25 grades of P&Ok fertilizers, out there to farmers at sponsored costs.

With impact from April 1, 2010, the subsidy on P&Ok fertilizers is ruled by the NBS Scheme. In conserving with its farmer-friendly method, the federal government is dedicated to creating P&Ok fertilizers out there to farmers at cheap costs.












Because of the sharp enhance in worldwide fertilizer and enter costs, resembling urea, DAP, MOP, and sulphur, the federal government has determined to soak up the value will increase by growing subsidies on P&Ok fertilizers, together with DAP. The subsidy can be distributed to fertilizer corporations at permitted charges, permitting them to supply fertilizers to farmers at a decrease value than would in any other case be the case.











First printed on: 27 Apr 2022, 10:26 IST




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