The Government of India is actively promoting self-reliance in the fertilizer sector and ensuring the availability of fertilizers to farmers at affordable prices through various initiatives. To facilitate this, the government has announced special packages over and above the Nutrient Based Subsidy (NBS) scheme to ensure the seamless supply of DAP (Di-Ammonium Phosphate) at reasonable rates.
The NBS policy, subsidies for Phosphatic and Potassic (P&K) fertilizers are determined based on international fertilizer and raw material prices and are revised annually or semi-annually. During the Kharif 2024 season, the subsidy for DAP was set at ₹21,676 per metric ton, while for Rabi 2024-25, it increased to ₹21,911. Additionally, the government approved a one-time special package of ₹3,500 per metric ton from April 1, 2024, to December 31, 2024, to provide affordable DAP to farmers. These measures aim to strengthen the agricultural sector and enhance the country’s food security.
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Urea is supplied to farmers at a fixed Maximum Retail Price (MRP). A 45 kg urea bag costs ₹242 (excluding neem coating and taxes). Under the 2012 policy, revised in 2014, six new urea plants have been established four by public enterprises and two by private companies. This has added an annual production capacity of 7.62 million metric tons, increasing the country’s urea production capacity from 20.75 million metric tons in 2014-15 to 28.37 million metric tons currently. Under this policy, production from 25 gas-based urea plants rose from 22.5 million metric tons in 2014-15 to 31.4 million metric tons in 2023-24.
Growth in Production of Phosphatic and Potassic Fertilizers: The government has permitted the establishment of new plants and the expansion of existing capacities for P&K fertilizers. Notably, 100% indigenous Potash-Derived-from-Molasses (PDM) fertilizers were notified under the NBS scheme on October 13, 2021. From the Kharif 2022 season, transport subsidies for Single Super Phosphate (SSP) were also introduced, enhancing the supply of P nutrients. Consequently, production increased from 15.95 million metric tons in 2014-15 to 18.28 million metric tons in 2023-24. These efforts have significantly improved fertilizer production and availability, empowering the agricultural sector.
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