Under the chairmanship of PM Modi, the Union Cabinet has approved the Department of Fertilizers' proposal, marking a significant step toward helping farmers and ensuring the availability of fertilizers at subsidized rates. The proposal involves fixing the Nutrient Based Subsidy (NBS) rates for the upcoming Kharif Season, 2024, specifically on Phosphatic and Potassic (P&K) fertilizers. Additionally, the Cabinet has given the green light for the inclusion of three new fertilizer grades under the NBS scheme. This decision is projected to require a tentative budget of approximately Rs. 24,420 crores for the Kharif season of 2024.
Benefits for Farmers
The approval of the NBS rates for Kharif Season 2024 is expected to yield several benefits for farmers across the country:
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Subsidized Prices: Farmers will have access to fertilizers at subsidized, affordable, and reasonable prices, ensuring they can afford the essential inputs for their agricultural activities.
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Rationalization of Subsidy: The subsidy on P&K fertilizers will be rationalized in light of recent trends in international fertilizer prices and inputs. This measure aims to strike a balance between the interests of farmers and fiscal prudence.
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Promotion of Balanced Soil Health: The inclusion of three new fertilizer grades under the NBS scheme will support the promotion of balanced soil health. Farmers will have access to fertilizers fortified with micro-nutrients, providing them with alternatives to suit their soil requirements.
Implementation Strategy and Targets
To ensure the smooth implementation of the approved NBS rates for Kharif Season 2024, the subsidy on P&K fertilizers will be provided based on the approved rates. This measure will come into effect from April 1, 2024, and will remain applicable until September 30, 2024. By adhering to the approved rates, farmers can expect the continued availability of fertilizers at affordable prices throughout the specified period.
The Government has been proactive in ensuring the availability of fertilizers to farmers at subsidized rates through various schemes, including the NBS Scheme implemented since April 1, 2010. With the recent fluctuations in international fertilizer prices and inputs such as Urea, DAP, MOP, and Sulphur, the Government has recognized the need to adjust the NBS rates accordingly.
The inclusion of new fertilizer grades and the rationalization of subsidy rates on P&K fertilizers reflect the Government's dedication to promoting agricultural sustainability and improving farmers' livelihoods.
