The Union Cabinet, on February 29, sanctioned the proposal to set the Nutrient-Based Subsidy (NBS) rates for the Kharif season of 2024, effective from April 1 to September 30, for Phosphatic and Potassic (P&K) fertilisers. Additionally, the Cabinet approved the inclusion of three new fertiliser grades under the NBS scheme.
During a press briefing in New Delhi, Union Minister Anurag Thakur announced that the tentative budgetary requirement for the Kharif season 2024 would be approximately Rs 24,420 crore.
Under the NBS Scheme, the Centre is ensuring the availability of 25 grades of P&K fertilisers to farmers at subsidized prices through fertiliser manufacturers or importers. The subsidy rates for P&K fertilisers for the Kharif 2024 season have been determined in light of recent trends in international fertiliser and input prices, including Urea, DAP, MOP, and Sulphur.
Subsidies will be provided to fertiliser companies based on approved and notified rates to ensure affordability for farmers. However, subsidy rates for nitrogen (N), potassic (K), and sulphur (S) remain unchanged for the 2024 Kharif season.
The addition of three new grades to the NBS scheme allows farmers to select fertilisers according to their soil requirements, promoting flexibility.
Minister Anurag Thakur emphasized the government’s consistent efforts to shield Indian farmers from global fertiliser and urea price spikes, ensuring stable fertiliser costs compared to the previous year. He highlighted that the subsidy provided by the government for the six-month Kharif season will significantly benefit all farmers.
The allocation for fertiliser subsidy for the next fiscal year stands at Rs 1.64 lakh crore, marking a 13 percent reduction compared to the revised budget estimate of Rs 1.89 lakh crore for FY24. This reduction appears to be influenced by declining international prices.
In 2022-23, India’s fertiliser subsidy reached a record high of Rs 2.25 lakh crore, primarily due to global supply shocks.
