Rising Prices Push Centre To Double Fertilizer Subsidy

| Updated: November 3, 2022 3:09 pm

In view of the huge increase in the prices of fertilizers, the central government has doubled the fertilizer subsidy for this Rabi season. The Union Cabinet meeting on Wednesday approved a subsidy of ₹51,875 crore for phosphatic and potassic (P&K) fertilizers on Nitrogen (N), Phosphorus (P), Potash (K) and Sulfur (S) for the ongoing Rabi season.

This amount has more than doubled from the budget estimate of Rs 21,000 crore for nutrient-based subsidy. Union Fertilizers and Chemicals Minister Mansukh Mandaviya said that the total fertilizer subsidy for the Rabi season, including Rs 80,000 crore for urea, would be Rs 1,38,875 crore and the subsidy amount for both Rabi and Kharif would be Rs 2.25 lakh crore. This is the highest subsidy ever. Last year it was Rs 1.65 lakh crore.

Mandavia further said that due to the Ukraine-Russia war and logistics difficulties due to the pandemic, prices have doubled.

Mandaviya said that a bag of Diammonium Phosphate costs Rs 1,350 and without subsidy, it would have cost Rs 2,650. He said that the subsidy on urea was around Rs 2,400 per bag, as a bag was being sold at Rs 266 with subsidy, the market price of which is Rs 2,700.

The central government has taken steps to increase the production of urea in the country. Against the requirement of 350 lakh metric tonnes (LMT), the production in the country is 250 LMT at present. However, four new plants are coming up to ramp up production.

Also Read: What Is Model Code Of Conduct?

Your email address will not be published. Required fields are marked *