The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JANUARY 1, 2025
In a landmark decision aimed at bolstering agricultural productivity and ensuring the welfare of farmers, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the extension of a one-time special package subsidy on Di-Ammonium Phosphate (DAP) fertilizer. This move ensures that farmers will continue to receive DAP at subsidized rates beyond the Nutrient-Based Subsidy (NBS) scheme, at an additional Rs 3,500 per metric tonne (MT), effective from January 1, 2025, until further notice.
The decision underscores the government’s commitment to making DAP fertilizers sustainably available to farmers at affordable prices. This step is expected to mitigate the challenges posed by geopolitical constraints and volatile global market conditions. According to an official statement, the government’s proactive measures aim to keep the prices of DAP fertilizer stable for the Kharif and Rabi cropping seasons of 2024-25.
Under the NBS scheme, in effect since April 1, 2010, 28 grades of Phosphatic and Potassic (P&K) fertilizers are made available to farmers at subsidized prices through manufacturers and importers. The extension of the special subsidy package for DAP reflects the government’s farmer-first approach, ensuring that the burden of rising global prices does not impact the agricultural sector.
In July 2024, the Cabinet had initially approved the special package subsidy for the period between April 1, 2024, and December 31, 2024, with an estimated financial outlay of Rs 2,625 crore.
