The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved a substantial subsidy of ₹22,303 crore for Phosphatic and Potassic (P&K) fertilisers for the upcoming Rabi Season of 2023-24. The decision comes as a response to the surging international prices of fertilisers and inputs.
Nutrient-Based Subsidy Rates for Rabi Season
The Cabinet’s decision follows a proposal from the Department of Fertilisers, aimed at setting Nutrient Based Subsidy (NBS) rates for the Rabi Season, which spans from October 1, 2023, to March 31, 2024. This move is expected to have a significant impact on agricultural practices in India, given the importance of P&K fertilisers in enhancing crop yields.
Ensuring Affordability and Accessibility for Farmers
The government’s primary objective is to ensure the smooth availability of P&K fertilisers to the nation’s farmers at affordable and reasonable prices. This initiative reflects a farmer-friendly approach and underscores the government’s commitment to supporting the agricultural community.
Responding to Global Fertiliser Trends
One of the crucial factors influencing this decision is the evolving landscape of international fertiliser prices. With a view towards rationalising subsidies on P&K fertilisers, the government seeks to adapt to the changing dynamics of the global fertiliser market. This move will safeguard the interests of Indian farmers by providing them with the necessary fertilisers at subsidised rates.
Implementation and Impact
The government’s strategy involves making available 25 different grades of P&K fertilisers to farmers at subsidised prices through approved fertiliser manufacturers and importers. The subsidy framework, governed by the Nutrient Based Subsidy (NBS) Scheme, was initiated on April 1, 2010, and continues to evolve in line with the government’s commitment to agricultural welfare.
By approving the NBS rates for Rabi 2023-24, effective from October 1, 2023, to March 31, 2024, the government is poised to provide the subsidy to fertiliser companies based on the approved and notified rates. This ensures that P&K fertilisers are readily accessible to farmers, thus fortifying India’s agricultural sector while mitigating the effects of rising global prices.
