Cabinet approves extension of special package on DAP to ensure its availability at affordable prices

New Delhi, January 1: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal of the Department of Fertilizers for extension of One-time Special Package on Di-Ammonium Phosphate beyond the NBS subsidy at the rate of Rs 3,500 per MT for the period from January 1 this year till further orders to ensure sustainable availability of DAP at affordable prices to the farmers.

The tentative budgetary requirement for above would be approximately upto Rs. 3,850 crore.

Briefing reporters after a meeting of the union cabinet, Information and Broadcasting Minister Ashwini Vaishnaw said that farmers will continue to get DAP at Rs 1,350 per 50 kg bag, which costs more than Rs 3,000 in other countries.

"This package will cost about Rs 3,850 crore... Since 2014, PM Modiji has ensured that farmers do not have to bear the brunt of market fluctuations... Fertiliser subsidy from 2014-24 was Rs 11.9 lakh crore which is more than double the subsidy given from 2004-14," he said.

According to an official release, 28 grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers/importers.

The subsidy on P&K fertilizers is governed by the NBS Scheme with effect from April 1, 2010.

"Continuing topmost priority in keeping farmers' welfare in firm focus, Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertilizer unchanged. In spite of geo-political constraints and volatility of global market conditions, Government kept its commitment towards farmer-friendly approach by ensuring availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25," the release said.

The Cabinet in July 2024 had approved a one-time Special Package on DAP beyond the NBS subsidy @ Rs 3,500 per MT from April 1, 2024 to December 31, 2024, with an approximate financial implication of Rs 2,625 crore.

The Cabinet in its meeting held today has approved extension of the Special Package on DAP with approximate financial implication upto Rs. 3850 crore.

With this, the total amount of special package approved for DAP since April 2024 would be more than Rs. 6,475 crore to ensure availability of DAP at affordable price to farmers.

Reader Comments

R

Rahul K.

This is a great initiative for our farmers! Affordable fertilizers mean better yields and more food security. Kudos to the government for thinking about agriculture sector 🙌

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Priya M.

My father is a farmer in Punjab and this will really help our family. The price difference is huge - Rs 1,350 here vs Rs 3,000 abroad. But I hope the subsidies reach actual farmers without middlemen taking advantage.

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Amit S.

While I appreciate the subsidy, I wonder about the long-term sustainability. Rs 6,475 crore is a massive amount - are we investing enough in organic alternatives too?

S

Sunita P.

Good move! But can someone explain why DAP costs so much more in other countries? Is it because of import duties or production costs? 🤔

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Vikram J.

The numbers speak for themselves - fertilizer subsidy more than doubled since 2014. This shows real commitment to farmers. Hope the benefits continue reaching those who need it most.

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Neha R.

As an agriculture student, I'm happy to see this! Affordable DAP is crucial for soil health and crop productivity. Maybe next we can focus on educating farmers about balanced fertilizer use? 🌱

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.