Cabinet Approves P&K Fertiliser Subsidy Rates For Rabi Season

The Cabinet on Wednesday approved nutrient-based subsidy rates on fertilisers for the upcoming Rabi season, in line with international prices of fertilisers and inputs.

The NBS rates would be applicable for the upcoming Rabi season from Oct. 1, 2023, till March 31, 2024, on phosphatic and potassic fertilisers.

The subsidy rates notified were as follows:

• Rs 47.02 per kg on nitrogen

• Rs 20.82 per kg on phosphorus

• Rs 2.38 per kg for potash

• Rs 1.89 per kg for sulphur

The nutrient-based subsidy for the upcoming Rabi season is expected to incur a cost of Rs 22,303 crore to the exchequer, according to a release issued on Wednesday. The subsidy would be provided to the fertiliser companies as per the notified rates so that it could reach the farmer with the benefit of the subsidy, it said.

The government has budgeted Rs 44,000 crore for nutrient-based fertiliser subsidies in FY24. Of this, Rs 34,110.69 crore, or 78% of the estimate, has already been expended as of August 2023, according to government data.

"The subsidy will continue as international prices continue to go up... For the last two years, the government has continued to provide more subsidy on these fertilisers so that the marginal farmer will benefit from it," Union Minister for Information and Broadcasting Anurag Thakur told the media.

Meanwhile, subsidy on di-ammonuim phosphate is expected to continue at Rs 4,500 per tonne for the Rabi season.

Thakur also clarified the per-bag retail prices for the fertilisers:

• Di-ammonium phosphate at 1,300 per bag.

• Nitrogen, phosphorous, and potassium at Rs 1,470 per bag.

• Single superphosphate at Rs 550 per bag.

• Muriate of potash will be available at Rs 1,655 per bag vs. Rs 1,700 earlier.