Govt keeps nutrient-based subsidy for P&K fertilisers unchanged for FY22

By: |
April 09, 2021 5:36 PM

For instance, retail prices of Di-ammonium phosphate (DAP) have been hiked to up to Rs 1,700 per bag of 50 kg from Rs 1,200 per bag with effect from April 1.

For the last fiscal, the government had fixed the subsidy rate for nitrogen (N) at Rs 18.78/kg, phosphate (P) at Rs 14.88/kg, potash (K) Rs 10.11/kg and sulphur (S) at Rs 2.37/kg.For the last fiscal, the government had fixed the subsidy rate for nitrogen (N) at Rs 18.78/kg, phosphate (P) at Rs 14.88/kg, potash (K) Rs 10.11/kg and sulphur (S) at Rs 2.37/kg.

The Centre on Friday kept the nutrient-based subsidy rates unchanged for phosphatic and potassic (P&K) fertilisers for the current 2021-22 fiscal till further orders.

For the last fiscal, the government had fixed the subsidy rate for nitrogen (N) at Rs 18.78/kg, phosphate (P) at Rs 14.88/kg, potash (K) Rs 10.11/kg and sulphur (S) at Rs 2.37/kg.

“…the competent authority has decided to extend the NBS rates of the year 2020- 2021 for FY 2021-22 till further orders,” the fertiliser ministry said in its latest order, a copy of which is with PTI.

The subsidy on P&K fertilisers is governed by the Nutrient Based Subsidy (NBS) Scheme from April 2010.

Industry experts said maintaining the same subsidy rates on P&K fertilisers for the current year will put pressure on retail prices of DAP and NPK soil nutrients amid rise in global prices and falling Indian rupee.

Some companies have already increased retail prices of P&K fertilisers.

For instance, retail prices of Di-ammonium phosphate (DAP) have been hiked to up to Rs 1,700 per bag of 50 kg from Rs 1,200 per bag with effect from April 1.

Taking note of recent increase in retail prices of P&K fertilisers, the government, however, on Friday directed the companies not to increase the rates and told them to sell the stock at old rates.

Retail prices of non-urea fertilisers such as DAP, Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while the Centre gives them fixed subsidies each year.

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