New Delhi

On Wednesday, the Union Cabinet approved a ₹24,475.53 crore nutrient-based subsidy (NBS) for phosphatic and potassic (P&K) fertilizers for the upcoming Rabi crop season. Chaired by PM Modi, the Cabinet endorsed the Ministry of Chemicals and Fertilisers’ plan to make fertilizers available to farmers at reduced, affordable prices.

The subsidy aims to adjust P&K fertilizer rates in response to recent global price changes. This measure will ensure that fertilizers remain accessible and affordable to farmers through 28 different P&K fertilizer grades provided by manufacturers and importers.

The NBS scheme will govern the subsidy, which is set to cover the period from October 1, 2024, to March 31, 2025. The subsidy will help manage the costs associated with fertilizers like urea, DAP, MOP, and sulphur, reflecting the latest international pricing trends. The government will release the subsidy to fertilizer companies based on approved rates to keep prices low for farmers.

In the first four months of the current fiscal year, the government paid out ₹36,993.4 crore in subsidies. Minister of State Anupriya Patel noted that under the Direct Benefit Transfer (DBT) system, subsidies are directly released to companies based on Aadhaar verification at retail points. Last year, a total of ₹1.95 lakh crore was provided to ensure lower fertilizer prices, following a ₹24,420 crore subsidy for summer crop fertilizers earlier this year.