The Cabinet Committee on Economic Affairs (CCEA) on Friday approved the fixation of Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers for 2017-18 with reduction in phosphorous and potash nutrient and increase in nitrogen and sulphur, a cabinet communique said.
The meet was chaired by Prime Minister Narendra Modi.
The estimates outgo of the subsidy was estimated to be lower in 2017-18 by Rs 839.44 crore.
The government has been implementing the NBS for decontrolled P&K fertilisers and as compared to 2016-17, the subsidy for 2017-18 has decreased from Rs 13.241 a kg to Rs 11.997 for phosphorous while for potash nutrient, the same was fixed at Rs 12.395 per kg from Rs 15.470.
The subsidy of nitrogen nutrient has been increased from Rs 15.854 per kg to Rs 18.989 and for sulphur, it was up from Rs 2.044 a kg to Rs 2.240 per kg.
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During 2016-17, the estimated consumption of P&K fertilisers was 279.8 LMT.
Based on the assumption that the consumption of P&K fertilisers during 2017-18 would remain the same, the estimated subsidy requirement at proposed rates would be Rs 19,848.99 crore which is lower by Rs 839.44 crore, the communique said.
--IANS
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