18 MAY,2023.
Cabinet gives approval for fertilizer subsidy of ₹1.08 lakh crore for kharif(PG 12)(GS 3,2)
18 MAY,2023.
•With fertilizer prices continuing to remain high due to global factors — such as a fall in production and hiked logistics costs, especially due to the Ukraine situation — the Centre expects this year’s fertilizer subsidy to cross ₹2.25 lakh crore.
• Accordingly, the Union Cabinet on Wednesday approved a ₹1.08 lakh crore subsidy for the ongoing kharif or monsoon season, Minister of Chemicals and Fertilizers Mansukh Mandaviya said.
•Out of this, ₹38,000 crore will subsidise phosphatic and potassic (P&K) fertilizers, while ₹70,000 crore will go toward the urea subsidy.
• Last year, the total fertilizer subsidy was about ₹2.56 lakh crore.
• Mr. Mandaviya told journalists that the Centre would ensure that the prices of urea and diammonium phosphate (DAP) would remain unchanged during the season.
•At present, the subsidised rate of urea is ₹276 per bag and the price of DAP is ₹1,350 per bag. The decision will benefit about 12 crore farmers, the Minister added.
•The total consumption of urea in the country is about 325 to 350 lakh tonnes (lt).