The Union Cabinet, led by Prime Minister Shri Narendra Modi, has given its approval for fixing the Nutrient Based Subsidy (NBS) rates for the Rabi Season 2023-24, covering the period from October 1, 2023, to March 31, 2024, for Phosphatic and Potassic (P&K) fertilizers. The approved rates for this season are as follows:
- Nitrogen (N): Rs. 47.02 per kg
- Phosphorus (P): Rs. 20.82 per kg
- Potash (K): Rs. 2.38 per kg
- Sulfur (S): Rs. 1.89 per kg
During the Rabi season of 2023-24, an estimated expenditure of Rs. 22,303 crore is expected for the NBS.
This decision ensures that subsidies on P&K fertilizers are provided at the approved rates for Rabi 2023-24 (effective from October 1, 2023, to March 31, 2024), ensuring that farmers have access to these fertilizers at reasonable and subsidized prices. The rationalization of subsidies on P&K fertilizers takes into account international fertilizer and input price trends, ensuring affordable access to these critical agricultural inputs.
Background: The government offers 25 grades of P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers has been governed by the NBS Scheme since April 1, 2010. The government’s farmer-friendly approach is committed to providing P&K fertilizers to farmers at reasonable prices. In light of recent trends in international fertilizer and input prices, such as Urea, DAP, MOP, and Sulfur, the government has approved the NBS rates for Rabi 2023-24, which will be effective from October 1, 2023, to March 31, 2024, for Phosphatic and Potassic (P&K) fertilizers. This subsidy will be provided to fertilizer companies based on the approved and notified rates, ensuring that fertilizers are accessible to farmers at affordable prices.
