Cabinet gives nod to increase in P&K fertilizer subsidy for kharif season FY23
The subsidy has been increased to Rs 2,501 per bag which was Rs 1,650 per bag in Rabi-2021-22 and Rs 512 in the year 2020-21, which has now been increased five times to Rs 2,501 per bag, the Fertilizer department tweeted.
- Apr 27, 2022,
- Updated Apr 27, 2022 4:25 PM IST
The Union Cabinet on Wednesday approved increase in P&K fertilizer subsidy for kharif season FY23 to Rs 60,939 crore, the Fertilizer department said in a tweet.
"Government of India has taken a historic decision by enhancing the #subsidy of P&K #Fertilizers to Rs 60,939 Cr for #Kharif - 2022, compared to the last year budget allocated in FY 2021-22 which was Rs 57,150 Cr. @mansukhmandviya @bhagwantkhuba @PMOIndia @cabsect_india @PIB_India," the department posted.
Also Read: Ukraine crisis: India boosts fertiliser imports from Canada, Israel
It added that the subsidy has been hiked to Rs 2,501 per bag.
"With regard to #DAP, the #subsidy has been increased to Rs 2,501 per bag which was Rs 1,650 per bag in #Rabi-2021-22 and Rs 512 in the year 2020-21, which has now been increased five times to Rs 2,501 per bag. @mansukhmandviya @bhagwantkhuba @PMOIndia @PibMinistry," the department said in another tweet.
The skyrocketing prices of gas have thrust the cost of urea production upwards since the beginning of the Russia-Ukraine conflict. The prices of non-urea fertilizers have also been detrimentally impacted owing to a shortfall of key raw materials as well as some finished products.
According to ICRA estimates, for every $1/mmBtu increase in the pooled price, the subsidy requirement for the urea sector jumps by approx. Rs 4,500-5,000 crore.
Also Read: Govt prepared to safeguard farmers from rising global fertiliser prices: Report
The Union Cabinet on Wednesday approved increase in P&K fertilizer subsidy for kharif season FY23 to Rs 60,939 crore, the Fertilizer department said in a tweet.
"Government of India has taken a historic decision by enhancing the #subsidy of P&K #Fertilizers to Rs 60,939 Cr for #Kharif - 2022, compared to the last year budget allocated in FY 2021-22 which was Rs 57,150 Cr. @mansukhmandviya @bhagwantkhuba @PMOIndia @cabsect_india @PIB_India," the department posted.
Also Read: Ukraine crisis: India boosts fertiliser imports from Canada, Israel
It added that the subsidy has been hiked to Rs 2,501 per bag.
"With regard to #DAP, the #subsidy has been increased to Rs 2,501 per bag which was Rs 1,650 per bag in #Rabi-2021-22 and Rs 512 in the year 2020-21, which has now been increased five times to Rs 2,501 per bag. @mansukhmandviya @bhagwantkhuba @PMOIndia @PibMinistry," the department said in another tweet.
The skyrocketing prices of gas have thrust the cost of urea production upwards since the beginning of the Russia-Ukraine conflict. The prices of non-urea fertilizers have also been detrimentally impacted owing to a shortfall of key raw materials as well as some finished products.
According to ICRA estimates, for every $1/mmBtu increase in the pooled price, the subsidy requirement for the urea sector jumps by approx. Rs 4,500-5,000 crore.
Also Read: Govt prepared to safeguard farmers from rising global fertiliser prices: Report