CCEA approves fixation of nutrient based subsidy rates for Phosphatic & Potassic fertilizers for year 2022

Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for Phosphatic and Potassic fertilisers (P&K) for the year 2021-22. The approved rate for Nutrient Based Subsidy (NBS) in case of Nitrogen has been fixed at 18.789 rupees per kilogram, for Phosphorus it is 45.323 rupees per Kg, for Potash 10.116 rupees per Kg and 2.374 rupees per Kilogram for Sulphur. The total amount of rollover will be 28 thousand 602 crore rupees and a special one-time package of additional subsidy on Di-Ammonium Phosphate (DAP) at a tentative cost of 5 thousand 716 crore rupees has also been provided. The net subsidy required for the rabi season for 2021-22 will be 28 thousand 655 crore rupees after deducting savings. The CCEA also approved the inclusion of Potash derived from Molasses under the Nutrient Based Subsidy Scheme.
The decision will enable smooth availability of all P and K fertilizers to the farmers during Rabi Season 2021-22 at the subsidized prices of fertilizers. It will support the agricultural sector by continuing the present subsidy levels and giving special packages of additional subsidy for DAP and three mostly consumed NPK grades.
It will give 438 rupees per bag benefit on Di-Ammonium Phosphate (DAP) and 100 rupees per bag benefit on NPK grades so as to maintain prices of these fertilizers affordable to the farmers.