The government of India is making available fertilizers, namely Urea and 22 grades of Phosphatic & Potassic (P&K) fertilizers including Di-ammonium Phosphate (DAP), Muriate of Potash (MOP) & Single Superphosphate (SSP) to farmers at subsidized prices through fertilizer manufacturers/ importers.
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The subsidy on P&K fertilizers is being governed by Nutrient based subsidy (NBS) Scheme w.e.f 01.04.2010.
The NBS Scheme for fertilizer is being implemented by the Department of Fertilizers.
Under the NBS Policy, a fixed rate of subsidy (in Rs. per Kg basis) is announced on nutrients namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S) by the Government on annual basis. The per Kg subsidy rates on the nutrient N, P, K, S is converted into per Tonne subsidy on the various P&K fertilizers covered under NBS Policy.
Any variant of the fertilizers covered under the subsidy scheme with micronutrients namely Boron and Zinc, is eligible for a separate per tonne subsidy to encourage their application along with primary nutrients.
MRP of P&K fertilizers has been left open and fertilizer manufacturers/marketers are allowed to fix the MRP at reasonable rates. In effect, the domestic prices are determined by demand supply mechanism.
