Amid reports of increasing fertilisers’ prices, the Government has directed all manufacturers not to increase retail prices of DAP and other phosphatic fertilisers during the ongoing Rabi season. The government, which increased subsidies on DAP and some other non-urea fertilisers, is unlikely to hike subsidies on non-urea fertilisers.
According to sources, union Fertiliser Minister Mansukh Mandaviya has said the government will not allow any increase in retail prices of DAP and also not tolerate price “cartelisation”. In June, the Union Cabinet had raised the subsidies for DAP and some other non-urea fertilisers by Rs 14,775 crore to keep the price of crop nutrients for farmers low despite the rising costs. The move was aimed at providing relief to the farmers amid the pandemic.
After urea, Di-Ammonium Phosphate (DAP) fertiliser is the most widely used one in the country.The government had increased subsidies by 140 per cent on DAP because of the surge in global prices. The subsidy for DAP fertiliser has been increased to Rs 1,200 per bag from Rs 500 per bag. Farmers will continue to get DAP at the old rate of Rs 1,200 per bag, the government had said. One bag has 50 kilograms of fertiliser.
The government has allocated nearly Rs 79,600 crore for fertiliser subsidies in the 2021-22 Budget. At present, the subsidy rates for N (Nitrogen) is Rs 18.789, P (Phosphorus) Rs 45.323, K (potash) Rs 10.116 and S (sulphur) Rs 2.374. The subsidy is for each kilogram of the fertiliser. The NBS rate on P stood at Rs 18.78 per kg last year.