The Union Cabinet has approved the per Kilogram rates of Nutrient Based Subsidy (NBS) for various Nutrients that is Nitrogen (N), Phosphorus (P), Potash (K) and Sulphar (S) for Phosphatic and Potassic (P&K) fertilizers for Rabi Season – 2022-23 (from 01.10.2022 to 31.03.2023).
Key points
- The announcement will enable smooth availability of all P&K fertilizers to the farmers during Rabi 2022-23 at the subsidized / affordable prices of fertilizers and support the agriculture sector.
- The volatility in the international prices of fertilizers and raw materials has been primarily absorbed by the Union Government.
- Government is making available fertilizers, namely Urea and 25 grades for P&K fertilizers to farmers at subsidized prices through fertilizer manufacturers/importers.
- The subsidy on P&K fertilizers is being governed by NBS Scheme w.e.f. 01.04.2010.
- Farmers buy fertilisers at MRPs (maximum retail price) below their normal supply-and-demand-based market rates or what it costs to produce/import them.
- The MRP of neem-coated urea, for instance, is fixed by the government.
- The MRPs of non-urea fertilisers including DAP are decontrolled or fixed by the companies. The Centre, however, pays a flat per-tonne subsidy on these nutrients to ensure they are priced at “reasonable levels.”
