The Indian government has approved a proposal to spend Rs244.78 billion ($2.9 billion) to subsidize phosphate and potash fertilizers for winter-sown crops, according to a Sept. 18 government statement.
“Despite rising prices of fertilizers in the global market, we have decided to keep the prices the same as last season,” said Minister Anurag Thakur at a press briefing after the Cabinet meeting.
The Nutrient Based Scheme (NBS) subsidies will be provided from Oct. 1 through March 31 to facilitate access for farmers to 28 grades of P&K compounds during the Rabi season. The subsidy will be provided directly to fertilizer manufacturers and importers at approved rates, so fertilizers will be made available to end users at affordable prices.
Under the new provisions, the nitrogen subsidy was slashed by 10% compared to the Kharif season, while the potash subsidy was unchanged. The phosphate subsidy was increased by 7% from the prior season, with the increase favoring TSP and SSP over DAP and MAP.
The cabinet also approved Rs350 billion ($4.2 billion) to continue the farm income guarantee initiative, which provides remunerative prices to farmers and controls price volatility of essential commodities.