The Union Cabinet has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22.
•The NBS program for Fertilizers was initiated in the year 2010.
•Under the scheme, a fixed amount of subsidy decided on an annual basis is provided on each grade of subsidized Phosphatic and Potassic (P&K) fertilizers, except for Urea, based on the nutrient content present in them.
•The scheme is administered by the Department of Fertilizers under the Ministry of Chemicals & Fertilizers.
•The scheme ensures that an adequate quantity of P&K is made available to the farmers at a statutory controlled price.
•The subsidy is released to fertilizer companies as per NBS rates so that they can make available fertilizers to farmers at affordable prices.
•In the last few months, the international prices of raw materials of DAP (Di-Ammonium Phosphate) and other P&K fertilizers have increased sharply.
•Prices of finished DAP etc. in the international market have also increased.
•Despite this sharp increase, DAP prices in India were initially not increased by the companies however, some companies increased the DAP price at the beginning of this financial year.
