To keep fertiliser prices in check, cabinet okays Rs 14,775 crore subsidy

NEW DELHI: The Union Cabinet on Wednesday approved increased subsidies of Rs 14,775 crore for Di-ammonium Phosphate (DAP) and some other non-urea fertilisers to keep the price of crop nutrients for farmers low despite the rising costs of raw materials. DAP is the most widely used soil nutrient after urea.
Last month, the Centre had decided to increase the subsidy on DAP fertiliser by 140% at a high-level meeting chaired by PM Modi. Minister of state for chemicals and fertilisers Mansukh Mandaviya said this has been done for the benefits of farmers. “Farmers will continue to get DAP at the old rate of Rs 1,200 per bag,” he said. One bag has 50 kilograms of the fertiliser. According to him, the subsidy for DAP fertiliser has been increased to Rs 1,200 per bag from Rs 500 per bag to provide relief to farmers.
Mandaviya said that in the case of urea, the maximum retail price is fixed while the subsidy amount keeps changing. On an average, he said the government is providing Rs 900 per bag subsidy on urea. But the government provides a fixed amount of subsidy on non-urea fertilisers, including DAP.