In a serious pro-farmer determination, the Centre on Wednesday hiked the subsidy on DAP fertiliser by 140 per cent, costing the exchequer a further Rs 14,775 crore, in a bid to make sure the soil nutrient is obtainable to farmers at outdated charges regardless of a pointy rise in international costs. The determination was taken at a high-level assembly chaired by Prime Minister Narendra Modi, in accordance with a PMO assertion.
“Government is committed to improving the lives of farmers. Therefore, despite increase in global prices, we have decided to make available the fertiliser at old rate,” Modi tweeted in Hindi. After urea, Di-ammonium Phosphate (DAP) is essentially the most broadly used used fertiliser within the nation. “A historic decision was taken to increase the subsidy for DAP fertiliser from Rs 500 per bag to Rs 1200 per bag, which is an increase of 140 per cent. ….With today’s decision, farmers will continue to get a DAP bag for Rs 1200,” the Prime Minister’s Office (PMO) stated.
Despite the rise in worldwide market costs of DAP, it has been determined to proceed promoting it on the outdated worth of Rs 1,200 per bag, it stated. “The central government has decided to bear all the burden of price hike. The amount of subsidy per bag has never been increased so much at once,” it added. The authorities spends about Rs 80,000 crore on subsidies for chemical fertilisers yearly.
With the rise in subsidy for DAP, the federal government will spend a further Rs 14,775 crore as subsidy within the Kharif season of this 12 months, it stated. In the assembly, the Prime Minister “stressed that farmers should get fertilisers at old rates despite the international rise in prices”, the assertion stated. The PM additionally stated his authorities is dedicated to the welfare of farmers and can take all efforts to make sure that they don’t have to face the brunt of worth rise, the PMO added.
According to the assertion, the high-level assembly mentioned intimately the rise in home fertiliser charges because of the rising international costs of uncooked supplies reminiscent of phosphoric acid and ammonia used within the making of DAP fertiliser. Recently, international costs of phosphoric acid and ammonia have gone up by 60-70 per cent.
So the precise worth of DAP is now Rs 2,400 per bag, which was to be bought by fertiliser corporations at Rs 1,900 after contemplating a subsidy of Rs 500, it stated. Last 12 months, the precise worth of DAP was Rs 1,700 per bag, on which the central authorities was giving a subsidy of Rs 500. The corporations have been, due to this fact, promoting the fertiliser to farmers for Rs 1,200 per bag, it added.
This is the second main determination within the farmers’ curiosity, after straight transferring Rs 20,667 crore to farmers’ accounts below the PM-KISAN scheme on the day of Akshay Tritiya, the assertion added. Retail costs of non-urea fertilisers reminiscent of DAP, Muriate of Potash (MoP) and NPK are decontrolled and decided by producers, whereas the Centre offers them fastened subsidies every year.
Recently, the federal government had requested fertiliser corporations to promote outdated inventory of non-urea fertilisers at outdated charges within the curiosity of farmers. However, some corporations had hiked the charges of DAP, taking cues from the worldwide market.