Centre Orders Firms to Not Hike Prices of DAP & other Phosphatic Fertilizers

The government has been taking various steps to ensure the crop nutrient availability at affordable prices during the ongoing Rabi Season. According to media sources, Union Minister Mansukh Mandaviya has directed all manufacturers not to increase retail prices of DAP and other phosphatic fertilizers. 

The government, which increased subsidies on DAP and some other non-urea fertilisers, is unlikely to hike subsidies further, they added. According to the sources, the Chemicals and Fertilizers Minister has said the government will not allow any increase in retail prices of DAP.  

Government’s Efforts to Control the Fertilizer Prices: 

In June, the Union Cabinet had raised the subsidies for DAP and some other non-urea fertilizers by Rs 14,775 crore to keep the price of crop nutrients for farmers low despite the rising costs. The move was aimed at providing relief to the farmers amid the pandemic.

After urea, Di-Ammonium Phosphate (DAP) fertiliser is the most widely used one in the country. The government had increased subsidies by 140 % on DAP because of the surge in global prices. The subsidy for DAP fertilizers has been increased to Rs 1200 per bag from Rs 500 per bag.

The farmers will continue to get DAP at the old rate of Rs 1200 per bag, the government had said. One bag has 50 kg of fertilizers. In 2021-22 budget, the government has allocated Rs 79600 crore for fertilizer subsidies. 

Fertilizer Subsidies: 

At present, the subsidy rates for N (Nitrogen) is Rs 18789, P (Phosphorous) Rs 45323, K (Potash) Rs 10116 and S (Sulphur) Rs 2374. The subsidy is for each kilogram of the fertilizer. 

The centre is making available fertilizers, namely Urea and 22 grades of P & K fertilizers (including DAP) to farmers at subsidized prices through fertilizer manufacturers/ importers. Government has fixed the MREP of Urea. 

The centre announces Nutrient Based Subsidy rates for P&K fertilizers every year. The subsidy on P&K fertilizers is being governed by NBS Scheme with effect from April1, 2021.