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Centre Managed to Keep Fertilizer Prices Affordable by Increasing Subsidies: Mandaviya

The Centre also stated that it will take strict action against crop nutrient hoarding and asked states to monitor fertilizer movement. It also directed states to provide accurate information to farmers in order to avoid panic buying.

Shivam Dwivedi
Fertilizing the plant
Fertilizing the plant

The Centre stressed on Monday that the availability of fertilizers during the current Kharif (summer-sown) season is more than the estimated demand, adding that its subsidy for this fiscal year may rise to around Rs 2.5 lakh crore to ensure that farmers receive crop nutrients at heavily subsidized rates.

The Centre also stated that it will take strict action against crop nutrient hoarding and asked states to monitor fertilizer movement. It also directed states to provide accurate information to farmers in order to avoid panic buying.

According to an official statement, Union Agriculture Minister Narendra Singh Tomar and Chemicals and Fertilisers Minister Mansukh Mandaviya jointly chaired a virtual review meeting with state/UT agriculture ministers on the situation of fertilizers.

"With the government's proactive steps in pre-positioning urea, DAP, NPK, and other fertilizers supply, we currently have more stock for a supply of fertilizers for this Kharif season than demand," Mandaviya said on the occasion.

He also advised states to continue providing farmers with adequate and accurate information about availability in order to avoid creating panic or misinformation about fertilizer stocks.

Despite the pandemic and rising raw material prices on a global scale, Mandaviya claims that the Centre has managed to keep fertilizer prices affordable by increasing subsidies, ensuring that farmers do not suffer."

Farmers will receive approximately Rs 2.5 lakh crore in subsidies this year. We should make plans to ensure that fertilizers are used in a balanced manner at the ground level "Mandaviya explained. Last fiscal, the total fertilizer subsidy was around Rs 1.62 lakh crore.

The Union Cabinet recently approved Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the Kharif Season - 2022. (from April 1 to September 30). The Cabinet approved a subsidy of Rs 60,939.23 crore for the NBS Kharif-2022.

The minister also urged states to keep track of how much fertilizer is available and needed at each district level, as well as how much stock each farmer has purchased, in order to avoid malpractices such as black-marketing.

Mandaviya emphasized the importance of combating malpractices such as hoarding, black-marketing, and fertilizer diversion, and stated that the government will take strict action in such cases.

He also urged states to educate farmers on recent trends in the fertilizer market, as well as alternative fertilizers and agricultural practices such as the use of nano urea and organic farming.

According to Mandaviya, the increase in international prices of DAP and its raw materials has primarily been absorbed by the Union government. The Centre has decided to provide a subsidy of Rs 2,501 per bag on DAP, rather than the current subsidy of Rs 1,650 per bag, representing a 50% increase over the previous year's subsidy rates.

The Union minister also advised states to conduct micro-planning of fertilizer movement within the states strictly in accordance with the requirements, as well as timely unloading of rakes for better rolling stock utilization.

Tomar stated that agriculture is an important industry that employs a large number of people.

"We are committed to providing assistance to agriculture, which is a priority for us. We have always worked to strengthen this sector, whether through investment, the Kisan Credit Card, insurance schemes, crop diversification, or horticulture. We are always at the forefront of agricultural production and are a global leader "He stated. "

Fertilizer is an important component of agricultural production, and our goal is to reduce our reliance on various fertilizer imports. We are committed, under the leadership of the Prime Minister, to ensuring the availability of affordable fertilizers for our farmers "Tomar stated.

Through manufacturers/importers, the Centre makes fertilizers, namely urea and 25 grades of P&K fertilizers, available to farmers at subsidized prices. With effect from April 2010, the NBS Scheme governs the subsidy on P&K fertilizers.

Stay tuned with Krishi Jagran for more Agri News!!

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