The Cabinet Committee on Economic Affairs (CCEA) on 14th October 2021 has approved that the increased prices of Phosphatic and Potassic (P&K) fertilizers vide notification dated 20th May 2021 shall be rolled over for the whole year 2021-22 from 1st Jaunary 2021 to 31st March 2022.
The increased international prices of Diammonium phosphate (DAP) have been absorbed by the Union Government. The Union Government has decided to increase the subsidy by Rs. 438 per bag of DAP as a special onetime package so that farmers can get DAP at the same price.
The committee has brought Potash derived from Molasses (PDM) under the Nutrient Based Subsidy (NBS) scheme for the first time since its inception in 2010 to give a push to its manufacturing by sugar mills as a byproduct.
Further, the committee has stated that this move would reduce India’s dependence on 100 per cent import of more than 42 LMT of Mineral-based Potash, that is, MOP which cost around Rs 7,160 crores annually. This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs 73 subsidy per 50 kg bag being sold at Rs 600-800 by Fertiliser Companies to farmers.
