Government Says Fertiliser Subsidy May Rise To Rs 2.5 Lakh Crore In 2022-23

Government on Monday stressed that availability of fertilisers during the current Kharif (summer-sown) season is more than the estimated demand, adding that its subsidy for this fiscal might increase to around Rs 2.5 lakh crore to ensure that farmers get crop nutrients at highly subsidised rates.

It further said it will take strict action against hoarding of crop nutrients and asked states to monitor fertiliser movement. It also told states to provide accurate information to farmers for ensuring there is no panic buying.

Union Agriculture Minister Narendra Singh Tomar and Chemicals and Fertilisers Minister Mansukh Mandaviya jointly chaired a review meeting virtually on the situation of fertilisers with the agriculture ministers of states, according to an official statement.

Speaking on the occasion, Mr Mandaviya said, "With the government's proactive steps in pre-positioning urea, DAP and NPK and other fertilisers supply, currently, we have more stock for supply of fertilizers for this kharif season than the demand." He also advised states to keep providing farmers with adequate and accurate information regarding availability and not create either a panic situation or misinformation related to fertiliser stocks.

Despite the pandemic and rise in prices of raw materials at international level, Mr Mandaviya said the Centre has managed to keep fertiliser prices affordable by increasing subsidies so that farmers do not suffer.

"This year, around Rs 2.5 lakh crore subsidy will be given to farmers. We should make plans so that the fertilizers are utilized at a balanced level at ground level," he said.

The total fertiliser subsidy stood at around Rs 1.62 lakh crore last fiscal.

Recently, the Union Cabinet approved Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers for Kharif Season - 2022 (from April 1 to September 30). The subsidy approved by the Cabinet for the NBS Kharif-2022 was Rs 60,939.23 crore.

The minister further urged states to take note of how much fertilisers are available and needed at each district level, and keep an eye on how much stock each farmer has bought in order to avoid malpractices like black-marketing.

Stressing on the need to tackle malpractices like hoarding, black-marketing or diversion of fertilisers, Mr Mandaviya said the government will take strict action in case of such scenarios.

He also urged states to make farmers aware of recent trends in the fertilisers market and alternate fertilisers and agriculture practices like use of nano urea and organic farming.

Mr Mandaviya said the increase in the international prices of DAP and its raw materials have been primarily absorbed by the Union government. The Centre has decided to provide a subsidy of Rs 2,501 per bag on DAP instead of the existing subsidy of Rs 1,650 per bag, which is a 50 per cent increase over the last year's subsidy rates.