Fertilizer Subsidy Of ₹1.08 lakh Crore For Kharif

Fertilizer Subsidy Of ₹1.08 lakh Crore For Kharif


The Centre anticipates that this year’s fertiliser subsidy will surpass 2.25 lakh crore because fertiliser prices continue to be high due to global reasons, such as a decline in production and increased logistical costs, particularly due to the Ukraine scenario. 

Points to Ponder:

  • For the current kharif or monsoon season, the Indian government has allocated a subsidy of 1.08 lakh crore for fertiliser. From this sum, 38,000 crores will be set aside f
  • or the subsidisation of phosphatic and potassic (P&K) fertilisers, while 70,000 crores would be used for the subsidisation of urea.

  • Total Fertiliser Subsidy: Around 2.56 lakh crore was spent on fertiliser subsidies overall last year. The government anticipates that the subsidy will exceed 2.25 lakh crore this year.
  • Urea and DAP Prices: According to Mansukh Mandaviya, Minister of Chemicals and Fertilisers, urea and diammonium phosphate (DAP) prices won’t vary throughout the growing season. While DAP costs $1,350 per bag, urea is only subsidised at a rate of $276 per bag.
  • Benefits for Farmers: Around 12 crore farmers in India will gain from the decision to preserve the prices of urea and DAP.
  • Consumption of Fertiliser: The nation uses between 325 and 350 lakh tonnes of urea, 100 and 125 lakh tonnes of DAP, 100 and 125 lakh tonnes of NPK, and 50 to 60 lakh tonnes of muriate of potash (MoP) annually.
  • Fertiliser Subsidy per Farmer: For a hectare of land, the fertiliser subsidy is expected to be $8,909. Each of the nation’s 12 crore farmers receives a subsidy of 21,223.

DAP Price Disparity: Farmers only pay 1,350 a bag for DAP, which has an actual cost of 4,000 rupees per bag. The subsidy for each bag of DAP is therefore $2,461.