NEW DELHI: The Union Cabinet Committee approved on Wednesday a Rs 22,303 crore Nutrient Based Subsidy (NBS) for the current Rabi season on Phosphatic and Potassic (P&K) fertilisers, chaired by Prime Minister Narendra Modi. There is no price increase for key soil nutrient DAP (di-ammonium phosphate).
This fixes NBS rates for the Rabi Season 2023-24 (from October 1, 2023, to March 31, 2024) on P&K fertilisers. The Cabinet has set NBS rates: nitrogen (N) at Rs 47.02 per kg, phosphorus (P) at Rs 20.82 per kg, potash (K) at Rs 2.38 per kg, and Sulphur (S) at Rs 1.89 per kg. For the previous kharif season of 2023-24, the government maintained a per kg subsidy rate of Rs 76 for N, Rs 41 for P, Rs 15 for K, and Rs 2.8 for S.
“We estimate an expenditure of Rs 22,303 crore as subsidy on P&K fertilisers for the Rabi season of 2023-24,” said Minister of Information and Broadcasting Anurag Thakur at a press briefing, reaffirming the Modi government’s commitment to ensuring affordable fertiliser availability to farmers. He confirmed that farmers would continue to receive key soil nutrient DAP at Rs 1,350 per bag, the same as the previous rate.
In May, the Union Cabinet approved a Rs 38,000 crore subsidy for P&K fertilisers for the Kharif season of 2023-24. Thakur also mentioned that NPK would be available at the previous rate of Rs 1,470 per bag, while SSP (single super phosphate) would cost around Rs 500 per bag. The MoP (Muriate of Potash) rates would decrease to Rs 1,655 per bag from Rs 1,700 per bag.
Regarding the reduction of NBS rates, Thakur explained that although international prices of finished products and raw materials have slightly decreased, they remain high. Therefore, the government continues to provide subsidies to maintain the previous rates. He noted that the fertiliser subsidy reached nearly Rs 2.55 lakh crore in the last fiscal, compared to around Rs 73,000 crore in the financial year 2014-15.
In another significant cabinet decision, the government approved the inclusion of the Jamrani Dam Multipurpose Project in Uttarakhand under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). This project will expand irrigation areas by 57,065 hectares in Uttarakhand and Uttar Pradesh. Drinking water and power benefits will be available exclusively to Uttarakhand.
The Cabinet Committee on Economic Affairs granted central support of Rs 1,557.18 crore to Uttarakhand for the project, which has an estimated cost of Rs 2,584.10 crore and is scheduled to be over by March 2028.
