Category

Countries

Boost for Indian Farmers: Government Greenlights Rs. 1 Lakh Crore Fertiliser Subsidy for Kharif Season
Boost for Indian Farmers: Government Greenlights Rs. 1 Lakh Crore Fertiliser Subsidy for Kharif Season

Boost for Indian Farmers: Government Greenlights Rs. 1 Lakh Crore Fertiliser Subsidy for Kharif Season

  • 23-May-2023 11:53 AM
  • Journalist: Rene Swann

NEW DELHI: To protect farmers from price fluctuations of soil nutrients during the current kharif season (April-September), the government has approved a fertilizer subsidy of approximately Rs 1.1 lakh crore. There are indications that the government's total subsidy outgo for the year will reach around Rs 2.2 lakh crore, which is Rs 50,000 crore higher than budgeted. This move serves as a crucial step towards supporting the agricultural sector and ensuring the stability of the nation's food supply.

The Union Fertiliser Minister, Mansukh Mandaviya, has confirmed that farmers will not face any changes in the maximum retail prices (MRPs) of fertilizers. He further explained that Rs 70,000 crore have been allocated towards urea for the current season, while another Rs 38,000 crore will benefit around 12 crore farmers for Phosphatic and Potassic (P&K) fertilizers. This move reinforces the government's commitment to supporting the agricultural sector and ensuring the growth and prosperity of farmers across the country.

The Indian government has recently announced a new decision aimed at providing great relief to farmers in the country. Currently, a 45kg bag of urea costs farmers Rs 276, while Di-Ammonium Phosphate (DAP) is priced at Rs 1,350. However, under this new policy, farmers will receive two-fold benefits during the kharif season. Firstly, P&K fertilizers, including DAP, will be available to farmers at affordable and reasonable prices, providing relief for their pockets. Secondly, the subsidy on P&K fertilizers will be rationalized, resulting in greater efficiency and effectiveness in resource allocation. This move highlights the government's commitment to supporting the agricultural sector and ensuring the growth and prosperity of Indian farmers.

The government has received some relief in terms of its subsidy outgo for the current kharif season (April-September) compared to the last rabi season (October-March). This reduction can be attributed to the fall in global prices of ingredients. For instance, the subsidy on Nitrogen is set at Rs 76 per kg, which is 22.5% lower than the previous rabi season. Similarly, the subsidy on Phosphorus is now Rs 41 per kg, nearly 39% less than the last season. This reduction in subsidy costs brings positive news for the government and reaffirms its commitment to achieving greater efficiency and effectiveness in resource allocation.

Related News

Cautious Restart of China's DAP Market Hints at Price Surge on Horizon
  • 22-Mar-2024 1:55 PM
  • Journalist: Yage Kwon
EuroChem Inaugurates Phosphate Fertilizer Complex in Brazil
  • 15-Mar-2024 4:34 PM
  • Journalist: Robert Hume
Iraqi Premier Inaugurates Two New Fertilizer Facilities in Basra
  • 11-Mar-2024 3:00 PM
  • Journalist: Xiang Hong
Fertilizer DAP Market Turn Steady Amidst limited spot purchases and plummet downstream enterprises
  • 29-Feb-2024 1:40 PM
  • Journalist: Jacob Kutchner