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Nutrient Based Subsidy Scheme

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.