The government today approved the subsidy rate for phosphatic and potassic (P&K) fertilisers for the next fiscal, which is estimated to cost the exchequer over Rs 23,000 crore.
The decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.
The CCEA has approved increase in the subsidy rate for potash and sulphur, while that for nitrogen and phosphorous has been reduced taking into account the global prices.
For the 2018-19 fiscal, subsidy rate for potassic fertiliser has been fixed at Rs 15.20 per kg , higher than Rs 11.99 per kg in the current fiscal.
Similarly, the subsidy for sulphur has been hiked to Rs 2.7 per kg for the next fiscal from Rs 2.24 per kg this year.
However, the subsidy for nitrogen has been reduced marginally to Rs 18.90 per kg for 2018-19 fiscal as against Rs 18.98 per kg this year.
The subsidy for phosphorous has been reduced to Rs 11.12 per kg for next fiscal, as against Rs 12.39 per kg this year.
"The expected expenditure for release of subsidy on P&K fertilisers during 2018-19 will be Rs 23,007.16 crore," an official statement said.
The government is making available fertilisers, namely urea and 21 grades of P&K fertilisers to farmers at subsidised prices through manufacturers/importers.
The subsidy on P&K fertilisers is being governed by nutrient based subsidy (NBS) scheme with effect from April 2010.
"The government has increased the subsidy expenditure by Rs 1,913.07 crore in comparison to 2017-18 fiscal to save the farmers from the impact of increase in international prices of P&K fertilisers," it added.
The CCEA also gave ex-post facto approval for subsidy paid on specific quantity of P&K fertilisers received in the districts during February and March in different years since 2012-13 at the rates fixed for the next fiscal which were lower than the rates approved by Cabinet/CCEA for that year.
The CCEA has authorised the Department of Fertilizers for releasing subsidy, if required, as per the rates fixed for the financial year or of the next financial year whichever is lower on the specific category/quantity of P&K fertilisers received in districts during February and March months of the year in consultation with the Department of Expenditure.
Besides, the CCEA has also approved the NBS as well as City Compost schemes till 2019-20.
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