 "P&K fertiliser subsidy stays unchanged for H2FY16")
The Cabinet Committee on Economic Affairs (CCEA) decided to keep the subsidy on phosphatic and potassic (P&K) fertiliser unchanged for the second half of this financial year.
That subsidy on nitrogen (N) is fixed at Rs 15.85 a kg, at Rs 13.24 a kg for phosphorus (P), Rs 15.47 a kg for potash (K) and Rs 2.04 a kg for sulphur (S).
"It has also been decided to ensure that any fall in international prices should be reflected by the fertiliser companies, with subsequent reduction in maximum retail price (MRP)," went an official statement.
Normally, the government fixes the subsidy rate on P&K fertiliser on an annual basis. This year, it had announced a rate for only the first six months, due to the volatility in global prices of these largely imported soil nutrients.
In 2015-16, the subsidy was Rs 20.88 a kg on N, at Rs 18.68 a kg on P, at Rs 15.50 a kg on K and Rs 1.68 a kg on S.
The government has allocated Rs 70,000 crore for total fertiliser subsidy in 2016-17, of which Rs 19,000 crore is for price-decontrolled P&K.
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