01 March 2024, New Delhi: The Union Cabinet, led by Prime Minister Shri Narendra Modi, has given its approval to the Department of Fertilizers’ proposal to fix the Nutrient Based Subsidy (NBS) rates for the Kharif Season 2024 (from 01.04.2024 to 30.09.2024) on Phosphatic and Potassic (P&K) fertilizers. The cabinet has also approved the inclusion of three new fertilizer grades under the NBS scheme. The estimated budgetary requirement for the Kharif season 2024 is approximately Rs. 24,420 crore.
Benefits:
1. Ensuring the availability of subsidized fertilizers to farmers at affordable and reasonable prices.
2. Rationalization of subsidy on P&K fertilizers in response to recent trends in international fertilizer and input prices.
3. Inclusion of three new fertilizer grades under the NBS scheme to promote balanced soil health and provide farmers with options to choose fertilizers fortified with micro-nutrients based on soil requirements.
Implementation Strategy and Targets:
The subsidy on P&K fertilizers will be provided based on the approved rates for the Kharif 2024 season (applicable from 01.04.2024 to 30.09.2024). This will ensure the smooth availability of these fertilizers to farmers at affordable prices.
Background:
The government has been providing 25 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme since 01.04.2010. In line with its farmer-friendly approach, the government is committed to ensuring the availability of P&K fertilizers to farmers at affordable prices. Considering the recent trends in international fertilizer and input prices, such as Urea, DAP, MOP, and Sulphur, the government has decided to approve the NBS rates for the Kharif 2024 season. Additionally, three new fertilizer grades will be included under the NBS scheme. The subsidy will be provided to fertilizer companies according to the approved and notified rates, ensuring that fertilizers are accessible to farmers at affordable prices.
