India - Government to give subsidy of more than 1 lakh crore subsidy on fertilizer

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal of the Department of Fertilizers for revision in Nutrient Based Subsidy (NBS) rates for various nutrients i.e. Nitrogen (N), Phosphorus (P), Potash (K), and Sulphur (S) for Rabi Season 2022-23 (from 01.01.2023 to 31.03.2023) and approved NBS rates for Kharif Season, 2023 (from 1.4.2023 to 30.09.2023) for Phosphatic and Potassic (P&K) fertilizers. 

The total fertilizer subsidy during the Kharif season 2023-24 has been fixed at Rs 1.08 lakh crore. The cabinet decided that the government will give a subsidy of Rs 38,000 crore during the Kharif season 2023 to provide quality and subsidized P&K fertilizers to the farmers, while Rs 70,000 crore has been approved for urea.

According to Chemicals and Fertilizers Minister Mansukh Mandaviya, this decision has been taken to ensure the availability of fertilizers to the farmers at subsidized, cheap, and reasonable prices. He said the MRP of Fertilizer will not be increased.

He said that the reduction in global prices in the last few months has reduced the subsidy burden on the government on potash and phosphate fertilizers in the ongoing Kharif season. During the entire financial year of 2023-24, the expenditure on fertilizers can reach up to 2.25 lakh crores.

Fertilizer Minister Mr. Mandaviya said that the cabinet has approved Nitrogen (N) at Rs.76 per kg, Phosphorus (P) at Rs.41, Potash (K) at Rs.15 per kg, and Sulfur (S) at Rs.2.8 per kg subsidy has been approved.