The authorities has accepted a further subsidy of Rs 14,775 crore to maintain costs of diammonium phosphate (DAP) fertiliser on the earlier stage to melt the blow to farmers who’ve protested in opposition to fee hikes by corporations over the previous two months. With this choice, the subsidy on DAP fertiliser will soar to Rs 1,200 per bag from earlier Rs 500 and the farmers will proceed to pay solely Rs 1,200 per bag.
The choice was taken at a high-level assembly, chaired by Prime Minister Narendra Modi, on Wednesday.
While the precise worth of DAP was Rs 1,700 per 50 kg bag final 12 months, farmers have been getting it at Rs 1,200/bag, as the federal government was offering a subsidy of Rs 500.
Recently, the worldwide costs of phosphoric acid, ammonia and so forth. utilized in DAP have gone up by 60-70%.
Prices of phosphatic (P) and potassic (Okay) fertilisers are pushed by the market, as subsidies supplied by the federal government are minimal and stuck. These fertilisers are principally imported.
The price range allocation for a subsidy of P and Okay fertilisers for FY22 was diminished to Rs 20,720 crore from about Rs 39,000 crore in FY21 (RE).