Cabinet approves fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the year 2020-21
- IBEF
- April 23, 2020
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval for fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) Fertilizers for the year 2020-21. The approved rates for NBS are as under: -
|
Per Kg Subsidy rates (in Rs) |
||||
|
N |
P |
K |
S |
|
|
18.789 |
14.888 |
10.116 |
2.374 |
|
The CCEA also approved the inclusion of a complex fertilizer namely Ammonium Phosphate (NP 14:28:0:0) under the NBS Scheme.
The expected expenditure for release of subsidy on P&K Fertilizers during 2020-21 will be Rs 22,186.55 crore (US$3.17 billion).
The subsidy on the P&K will be provided on the subsidy rates approved by the CCEA to the fertilizer companies.
Background
Government is making available fertilizers, namely Urea and 21 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f 01.04.2010. In accordance to its farmer friendly approach, the Govt. is committed to ensure the availability of P&K fertilizers to the farmers on affordable price. The subsidy would be released to fertilizer companies as per above rates so that they can make available fertilizers to farmers at a cheaper price than it would have been otherwise.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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