New Delhi [India], October 14 (ANI): The Cabinet Committee on Economic Affairs (CCEA) has approved the rates for Phosphatic and Potassic (P&K) fertilisers for the year 2021-22 (from October 1, 2021, to March 31, 2022).
According to a statement issued by the Ministry of Chemical and Fertilisers on Thursday, the increased international prices of Diammonium phosphate (DAP) have been absorbed by the Centre. The Central government has decided to increase the subsidy by Rs 438 per bag of DAP as a special one-time package so that farmers can get DAP at the same price.
The increased international prices of raw materials for production of the three most consumed NPK grades (10:26:26, 20:20:0:13 and 12:32:16) have been absorbed by the Centre by increasing subsidy by Rs 100 per bag on these NPK grades as a special onetime package so that farmers can get these fertilisers at affordable prices, the statement said.
The Ministry has brought Potash derived from Molasses (PDM) under the Nutrient Based Subsidy (NBS) scheme for the first time since its inception in 2010 to give a push to its manufacturing by sugar mills as a byproduct.
“This move is expected to reduce India’s dependence on 100 per cent import of more than 42 LMT of Mineral-based Potash, that is, MOP which cost around Rs 7,160 crores annually. This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs 73 subsidy per 50 kg bag being sold at Rs 600-800 by Fertiliser Companies to farmers,” the ministry said.
It is expected that the Centre will spend approximately Rs 156 crores annually as a subsidy on PDM and save foreign exchange of Rs 562 crores. (ANI)