The Cabinet Committee on Economic Affairs (CCEA) has approved that the increased prices of Phosphatic and Potassic (P&K) fertilizers
- The increased international prices of Diammonium phosphate (DAP) have been absorbed by the Union Government.
- The Union Government has decided to increase the subsidy by Rs. 438 per bag of DAP as a special onetime package so that farmers can get DAP at the same price.
- The increased international prices of raw materials for production of three most consumed NPK grades (10:26:26, 20:20:0:13 and 12:32:16) have been absorbed by the Union Government by increasing subsidy by Rs. 100 per bag on these NPK grades as a special onetime package so that farmers can get these fertilizers at affordable prices.
- The Union Government has brought Potash Derived from Molasses (PDM) under Nutrient Based Subsidy (NBS) scheme for the first time since its inception in 2010 to give a push to its manufacturing by Sugar Mills as a byproduct. This Fertilizer is known as PDM-0:0:14.5:0.
- This move is expected to reduce India’s dependence on 100% import of more than 42 LMT of Mineral based Potash i.e. MOP which cost around Rs. 7,160 crores annually.
- This decision will not only improve the income level of sugarcane growers and sugar mills but also offer Rs. 73 subsidy per 50 kg bag being sold @ Rs 600-800 by Fertilizer Companies to farmers.
- It is expected that the Union Government will spend Rs. 156 crores (approx.) annually as subsidy on PDM and save a foreign exchange of Rs. 562 crores.