The cabinet committee on economic affairs on Wednesday fixed nutrient-based subsidy rates for Phosphatic and Potassic (P&K) fertilisers for the ensuing fiscal 2016-17.
"The cabinet committee, chaired by Prime Minister Narendra Modi, has approved fixation of nutrient-based subsidy rates for P&K fertilisers in 2016-17 following decreasing trend in international prices of finished fertilisers and raw materials," an official statement said.
The total subsidy implication on the two fertilisers for 2016-17 at proposed rates will be Rs.21,274 crore.
The subsidy policy for decontrolled fertilisers, under implementation since April 1, 2010, is revised yearly for each nutrient -- nitrogen, phosphorous, potash and sulphur on per kg basis.
"The rates are determined on the international and domestic prices of P&K fertilisers, exchange rate and inventory level in the country," the statement noted.
The subsidy rate for nitrogen will be Rs.15.9 per kg, phosphorous Rs.13.24, potash Rs.15.5 and sulphur Rs.2.04.