Nutrient Based Subsidy Scheme:
The Commission for Agricultural Costs and Prices (CACP) has recommended the Centre to bring urea under the nutrient-based subsidy (NBS) regime to address the problem of imbalanced use of nutrients.
- Nutrient Based Subsidy scheme is being implemented in 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
- A fixed amount of subsidy decided on annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers depending on its Nutrient Content.
- In case of phosphate (P) and potassic (K)fertilisers, subsidy is fixed under this scheme by an inter-ministerial committee taking into account the benchmark international prices of finished fertilisers as well as raw materials.
- The subsidy is given to registered to P&K fertiliser manufacturers/importers which provides these fertilisers at subsidised rates to farmers.
- It helps farmers in ensuring availability of essential nutrients at subsidized prices.
- It rationalizes the subsidy on P&K fertilizers, ensuring effective and efficient utilization of government resources.