Nutrient Based Subsidy for kharif 2023 gets Cabinet nod

Briefing on Cabinet decisions, Fertilisers Minister Mansukh Mandaviya said, “The Cabinet has taken an important decision regarding fertiliser subsidy”.

During kharif season 2023, Rs 70,000 crore will be spent for urea subsidy and Rs 38,000 crore for DAP subsidy, taking the total fertiliser subsidy to Rs 1.08 lakh crore during the kharif season, Mandaviya said.

Mandaviya informed that the rate of subsidy has been fixed at Rs 76 per kg for N, Rs 41 per kg for P, Rs 15 per kg for K, and Rs 2.8 per kg for Sulphur for the 2023 kharif season.

The NBS rates for kharif 2022 stood at Rs 91.96 per kg for N, Rs 72.74 per kg for P, Rs 25.31 per kg for K, and Rs 6.94 per kg for Sulphur. For Rabi season 2022-23, the NBS rates stood at Rs 98 per kg for N, Rs 66.93 per kg for P, Rs 23.65 per kg for K, and Rs 6.12 per kg for Sulphur.

In the last three months, the prices of NPK have come down marginally and taking them into account, the NBS rates have been fixed, Mandaviya said.

Mandaviya further said that the annual consumption of urea in the country is about 325-350 lakh metric tonnes, while the consumption of DAP (Diammonium phosphate) is about 100-125 lakh metric tonnes, NPK 100-125 LMT and MOP (Muriate of potash) 50-60 LMT.

For kharif 2023, India has a stock of 150 LMT, which includes 75 LMT urea, 36 LMT DAP, 45 LMT NPK, he said.

It is an endeavour of the Modi government to ensure that fertilisers are available for farmers and they are not burdened in the situations when there are ups and downs in the prices of fertilisers in the international market, he said.

Mandaviya said that the government provided Rs 2.54 lakh crore for fertiliser subsidy during the last year, which used to be around Rs 1-1.25 lakh crore earlier.

“There are 12 crore farmers and 1,400 lakh hectare cultivated land in the country. If we analyse, the Modi government has spent Rs 8,909 per hectare on fertiliser subsidy,” he said.

Despite an increase in the prices in the international market, the government did not increase prices of fertilisers in the country, Mandaviya added.

Stating that fertiliser prices in India are lower than its neighbouring countries, Mandaviya said that a bag of urea costs Rs 266 in India, Rs 791 in Pakistan, Rs 593 in Indonesia, Rs 2100 in China, Rs 719 in Bangladesh, Rs 3,060 in US, and Rs 3,060 in Brazil. A bag of DAP costs Rs 1,350 in India, Rs 4,177 in Pakistan, Rs 9,700 in Indonesia, Rs 2,400 in China, Rs 719 in Bangladesh, Rs 3,633 in US and Rs 4,180 in Brazil, he said.