Nutrient Based Subsidy rates fixed for Phosphatic and Potassium Fertilizers
For the financial year 2020-2021, the Cabinet Committee on Economic Affairs has given its approval for the subsidy of Rs. 22,187 crores for the rates of the fertilizers.
The Cabinet Committee on Economic Affairs gave its approval to fix Nutrient Based Subsidy (NBS) rates for Potassium and Phosphatic fertilizers on April 22.
For the financial year 2020-2021, the committee has given its approval for the subsidy of Rs. 22,187 crores for the rates of the fertilizers.
The fall in global fertilizer prices will be beneficial for the farmers as this year’s subsidy is marginally lower than the last year of Rs. 22,875. Crores. The committee has also approved the inclusion of ammonium phosphate under the subsidy scheme.
• The annual consumption of P & K fertilizers has been around 24 million tonnes.
• There is a downward trend in the global prices of all the commodities including fertilizers.
• The fertilizers namely urea and 21 grades of P&K fertilizers will be made available by the government to farmers at the subsidized prices through fertilizer importers and manufacturers.
• There will be the availability of P&K fertilizers to farmers at affordable prices. Fertilizer companies will receive the subsidy as per the decided subsidy rates so that the fertilizers will be available to the farmers at a cheaper price.
• In the case of P&K fertilizers, the government fixes the subsidy on nutrients and the remaining cost has to be compensated by the farmers.
• In the case of urea, the maximum retail price (MRP) is fixed by the government. The difference between the MRP and production cost is reimbursed to manufacturers.
Approved Rates for Nutrient Based Subsidy (NBS):
• For Nitrogen, the rate will be 18 rupees 78 paise per kg
• For Phosphorus, it will be 14 rupees 88 paise per kg
• For Potash, the rate will be 10 rupees 11 paise per kg
• For Sulphur NBS rate will be 2 rupees 37 paise per kg
Another step for farmers:
The central government has relaxed the requirement of Aadhaar card of farmers to access the benefits of PM Kisan Scheme in Ladakh, Jammu & Kashmir, Meghalaya, and Assam until March 2021. Earlier, farmers in these regions were exempted until March 2020 due to the slow process of Aadhaar Cards.