Subsidy on DAP fertiliser hiked by 140%
Government will spend additional Rs 14,775 crore as subsidy in Kharif season
New Delhi, May 20, 2021: Union Minister for Chemicals and Fertilizers D.V. Sadananda Gowda today expressed his heartfelt gratitude to Prime Minister Narendra Modi for taking historic decision to onetime enhance subsidy rates for DAP and other P & K fertilisers for upcoming Kharif season, which he said would hugely benefit millions of farmers.
It may be noted that prices of Phosphatic and Potassic (P&K) fertilisers are decontrolled and manufacturers are free to fix MRPs of their product. In recent months, international prices of finished fertilisers like Di-ammonium Phosphate (DAP) and its raw materials like phosphoric acid, ammonia and sulphur have seen huge jump of 60 to 70 %, which in turn has been putting pressure on their domestic prices. There were reports of DAP being sold by fertilizer companies at increased MRP of Rs 1900/- per bag in the month of April, which was an increase of Rs 700/- bag from price prevailing in the month of March. Similarly, domestic prices of other P & K fertilisers surged by almost 50 %. Fertilizer being critical input for agriculture operation, these were increasing hardships of farmers.
In view of this the Government, keeping in mind the interest of the farmer, took a prompt and proactive action to address the hardship of the farmers. A High Level Meeting was chaired by the Prime Minister on 19 May, 2021, in which the Prime Minister directed that there shall be no increase in price of P&K fertilisers, and that the Central Government would bear all the burden of price increase for the upcoming kharif season as a one-time measure to reduce hardship of farmers during the covid period.
The subsidy rate for DAP has been enhanced from Rs 511/- per bag to Rs 1211/- per bag, an increase of Rs 700/- per bag. This will ensure that DAP will continue to be available to the farmers at last years’ price of Rs 1200/- per bag. Subsidy on DAP fertiliser is hiked by 140% The price of other P & K fertilisers will also reduce to around last years’ prices. The Government will spend additional Rs 14,775 crore as subsidy in Kharif season.
