Government Unveils Special Packages to Lower Fertilizer Prices for Farmers
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New Delhi, Dec 3 (NationPress) The government has introduced unique additional packages for farmers, supplementing the Nutrient-Based Subsidy (NBS) to further decrease the price of fertilisers during both the kharif and rabi seasons of 2024, as reported to Parliament on Tuesday.
The government has ensured the uninterrupted availability of fertilisers at reasonable prices despite recent geopolitical challenges stemming from the Russia-Ukraine conflict by offering special packages that enhance the NBS subsidy rates as necessary, thereby maintaining the stability of the Maximum Retail Price (MRP) of fertilisers and absorbing market volatility, Minister of State for Chemicals and Fertilisers Anupriya Patel informed the Rajya Sabha in a written response to an inquiry.
To further diversify its sources, the government is engaging with countries rich in fertiliser resources and facilitating long-term agreements between Indian fertiliser companies and suppliers to secure the supply of fertilisers and raw materials for India, she stated.
Regarding Phosphatic and Potassic (P&K) fertilisers, the government has enacted the NBS Policy effective April 1, 2010. Under this policy, a fixed subsidy amount, determined annually or bi-annually, is allocated to manufacturers/importers of subsidised P&K fertilisers based on their nutrient composition, namely Nitrogen (N), Phosphorus (P), Potassium (K), and Sulphur (S), to enhance availability for farmers.
The import of P&K fertilisers is deregulated, allowing companies to import or produce fertiliser raw materials, intermediates, and finished products according to their business strategies. Nonetheless, the government keeps a watchful eye on the international prices of key fertilisers and raw materials, adjusting NBS rates for P&K fertilisers annually or bi-annually to account for any fluctuations, the minister mentioned.
Moreover, she noted that urea is made available to farmers at a legally mandated MRP, independent of production costs. The subsidised MRP for a 45 kg bag of urea is set at Rs 242 per bag, excluding charges for neem coating and applicable taxes.
The difference between the delivered cost of urea at the farm gate and the net market revenue for urea units is provided as a subsidy to urea manufacturers/importers by the government. Consequently, all farmers receive urea at subsidised rates, she added.
