New fertilizer subsidy rates can help farmer save Rs 438/bag
New Delhi, Oct 12: In a move seen as a possible farmer outreach initiative, the Narendra Modi government has approved the fixation of the subsidy rates of various types of fertilizers for the Rabi season that can help a farmer save Rs 438 per bag.
The rates fixed from October 1 to March 31 next year are Rs 18.798 for nitrogen, Rs 45.323 for phosphorus, Rs 10.116 for potash and Rs 2.374 for sulphur, said a government statement.
The proposal was moved by the Department of Fertilizers for these nutrient based fertilizers to ensure affordability and seamless availability during the upcoming Rabi season.
The proposal also included a special one time package for additional subsidy on DAP fertilizer at a cost of Rs 5,716 crore and special one-time package for additional subsidy on three most consumed NPKs at a cost of Rs 837crore. All of these proposals got the approval of the Cabinet Committee on Economic Affairs which met here on Tuesday under the leadership of the PM.
The total outgo on account of the clearance of the proposal for the government will be Rs 35,115 crore.
The decision will help a farmer save Rs 438 per bag of DAP fertilizer and Rs 100 per bag benefit on each NPK.
The subsidy on fertilizers such as P&K is been governed by the NBS scheme since April 2010.
“The subsidy would be released to fertilizer companies as per above rates so that they can make available fertilizers to farmers at an affordable price,” the government statement said.