To insulate farmers from the sharp will increase within the costs, the Centre introduced a doubling of fertiliser subsidy to Rs 2.15 trillion from the budgeted stage for FY23. The transfer was necessitated by a pointy spike in world costs of urea, DAP and MoP within the final one 12 months. “Despite rising fertiliser prices globally, we have protected our farmers from such price hikes. In addition to the fertiliser subsidy of Rs 1.05 trillion in the Budget, an additional amount of Rs 1.10 trillion is being provided to further cushion our farmers,” the FM tweeted.
On April 27, 2022, the Centre mentioned the nutrient-based subsidy (NBS) charges for phosphatic and potassic (P&Okay) fertilisers for the kharif season (April-September, 2022) will probably be Rs 60,939 crore, as in opposition to Rs 57,150 crore for the entire of final 12 months.
These soil vitamins are largely imported.
The funds outgo on fertiliser subsidy was at Rs 1.6 trillion in FY22. Retail costs of phosphatic and potassic (P&Okay) fertilisers, together with DAP have been ‘decontrolled’ in 2010 with the introduction of a ‘fixed-subsidy’ regime as a part of NBS mechanism.
However, the subsidy on DAP noticed a rise to 60% of price in FY22, from slightly over 30% beforehand.
According to fertiliser ministry information, imported urea costs have risen by extra than145% to $930 a tonne in April 2022 from $380 a tonne a 12 months in the past.
Similarly, costs of DAP and MoP have risen by 66% and 116% to $924 a tonne and $590 a tonne in April 2022, respectively, in comparison with the year-ago interval.
Source: www.financialexpress.com”