CCEA approves Nutrient Based Subsidy rates for Phosphatic & Potassic Fertilisers for 2021-22
New Delhi, October 13, 2021
The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for Phosphatic & Potassic (P&K) Fertilizers for the year 2021-22.
The approved rates for NBS will be Rs 18.789 per kg for N (Nitrogen); Rs 45.323 for P (Phosphorus); Rs 10.116 for K (Potash); and Rs 2.374 for S (Sulphur).
The total amount of rollover will be Rs 28,602 crore. There will be a special one-time package for additional subsidy on DAP at the tentative additional cost of Rs 5,716 crore.
A special one-time package for additional subsidy on the three most consumed NPK grades-- NPK 10-26-26, NPK 20-20-0-13 and NPK 12-32-16-- will be at a tentative cost of Rs 837 crores. The total subsidy required will be Rs 35,115 crore, an official press release said.
The CCEA also approved the inclusion of Potash derived from Molasses (0:0:14.5:0) under the NBS Scheme.
The net subsidy required for Rabi 2021-22 after deducting the savings will be Rs 28,655 crore, the release said.
According to it, this will enable smooth availability of all P&K fertilizers to the farmers during Rabi Season 2021-22 at the subsidized / affordable prices of fertilizers and support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three most-consumed NPK grades.
lt will give Rs 438 per bag benefit on Di-Ammonium Phosphate (DAP) and Rs 100 per bag benefit each on NPK 10-26-26, NPK 20-20-0-13 & NPK 12-32-16 to maintain the prices of these fertilizers affordable to the farmers.
The subsidy on P&K fertilizers will be provided based on the NBS rates approved by the CCEA to ensure the smooth availability of these fertilizers to the farmers at affordable prices.
The Government is making available fertilizers, namely Urea and 24 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/ importers. The subsidy on P&K fertilizers is being governed by NBS Scheme from April 1, 2010.