PIB News Update: 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 Phosphaticand 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.
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.