Krishi VaartaKrishi Jaagran
Modi government fixes subsidy rates on phosphorus and potash fertilizers, amount increased by Rs 22,186 crore
The Modi government has given a big relief to the farmers suffering from the covid-19 epidemic crisis. The Cabinet Committee on Economic Affairs (CCEA) met under the chairmanship of PM Modi in which several important decisions were taken in the interest of farmers. In this series, the government has increased fertilizer subsidy for the ongoing financial year.
Many topics related to farmers were discussed in the meeting chaired by the Modi government. It also includes fertilizer subsidy. The government has increased fertilizer subsidy to Rs 22,186.55 crore. In this way, the total subsidy expenditure on fertilizers is expected to increase by 5 to 7 percent during the financial year. It also contains phosphorus and potash fertilizers. There was a long-standing demand for fertilizer subsidy to include phosphorus and potash fertilizers. At present, the determination of (NBS) rates in this regard has been approved. Following this decision, fertilizer companies (CCEA) will get subsidies on phosphorus and potash fertilizers at approved rates.
Non-urea subsidy rates reduced
This time the government has cut subsidy rates for non-urea fertilizers. During this period, the burden of fertilizer subsidy on the exchequer will come down to Rs 22,186.55 crore. The total subsidy expenditure on these in the year 2019-20 was Rs 22,875 crore.
The subsidy on nitrogen has been reduced from 90 to Rs 18.78 for the year 2020-21.
• Subsidy on phosphorus has been reduced from 21 to 14.88 rupees.
• The subsidy on potash has been reduced from 12 to 10.11 rupees.
• Subsidy on Sulfur has been reduced from 56 to Rs. 2.37 per kg.
DAP-NPK price deregulated
Let us tell you that the government provides subsidies to the manufacturers or importers to provide fertilizers, urea and 21 grade phosphorus and potassic fertilizers to the farmers at cheap prices. At present, the government has deregulated the prices of non-urea fertilizers such as DAP, MOP and NPK.Their determination is left to their manufacturers. Explain that every year a fixed subsidy is given to them by the government. Also fixes the retail price for urea. After this the difference between the cost of production and the fixed MRP is made available to the manufacturers.
Source: - Krushi Jagaran, 23 April 2020
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