The government has provided nearly Rs 1.71 trillion in fertilizer subsidies till January this fiscal, Parliament was informed on Friday.
In a written reply to Lok Sabha, Minister for Chemicals and Fertilizers Bhagwanth Khuba said the government is providing subsidies on various fertilizers to ensure adequate availability of fertilizers at affordable prices to farmers.
“The fertilizer subsidy in the country for the year 2023-24 (from January 31, 2024) is Rs 1,70,923 crore,” he added.
The government has introduced a Nutrient Based Subsidy Policy (NBS) for Phosphatic and Potassium (P&K) Fertilizers with effect from April 1, 2010. Under the policy, a fixed subsidy amount, determined on an annual/semi-annual basis, is provided on registered P&K fertilizers, depending on their nutrient content.
“Under this policy, P (maximum retail price) is fixed by fertilizer companies based on market dynamics at a reasonable level, which is monitored by the government. Accordingly, every farmer in India, including poor and marginal farmers who purchase these fertilizers, gets benefits of subsidies ,” Khuba said.
On urea, the minister said that urea is being provided to the farmers at a legally notified P.
The price of a 45 kg bag of urea is Rs 242 per bag (excluding Neem coating charges and any taxes), he added.
In a separate reply, Khuba informed that expenditure on fertilizer subsidies in the last five years was Rs 73435.21 crore in 2018-19, Rs 83,466.51 crore in 2019-20, Rs 131229.50 crore in 2020-21, Rs 157640.63 crore in 2021-2022 and Rs 2,54,798.88 crore during the financial year 2022-2023.
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First print: February 9, 2024 | 7:44 PM IST