Prime Minister Narendra Modi’s office announced today that the Centre will deliver a massive 140 percent raise in fertilizer subsidies to compensate for rising international prices. This subsidy would cost the government an extra 14,775 crore.
“Prime Minister Narendra Modi has said farmers should get fertilizers at old rates despite the international price rise… The welfare of farmers is at the core of government’s efforts,” the PM’s office said in a statement.
Instead of the present 500, farmers can get a 1,200 subsidy per bag of fertilizer. Farmers will continue to get a bag of DAP (Di-ammonium Phosphate) for 1,200 dollars instead of 2,400 dollars, which is what the markets are working out to due to the increase in global prices.
A high-level meeting chaired by the Prime Minister this evening made the decision to raise the fertilizer subsidy.
Farmers can get a subsidy of 1,200 per bag of fertilizer, up from 500 now. Farmers will continue to get a bag of DAP (Di-ammonium Phosphate) for 1,200 instead of 2,400, which is what the markets are working out to as a result of the increase in global prices.
The decision to increase the fertilizer subsidy was made this evening at a high-level meeting chaired by the Prime Minister.
According to reports, the price of fertilizers is increasing due to rising phosphoric acid, ammonia, and other foreign rates. Despite foreign price increases, the Prime Minister emphasized that farmers “should get fertilizers at old rates,” according to the statement.
“Last year, the actual price of DAP was ₹ 1,700 per bag. In which the Central Government was giving a subsidy of ₹ 500 per bag. So the companies were selling fertilizer to farmers for ₹ 1200 per bag,” the statement read.
“The volume of subsidy per bag has never been raised so much at once,” the PM’s Office said, calling it a “historic decision.”
Phosphoric acid, ammonia, and other ingredients used in DAP have recently increased by 60% to 70% on the foreign market. As a result, the real price of a DAP bag is now 2400, which Fertilizer producers will sell for 1900 after a 500 subsidy. Farmers will continue to receive a DAP bag for $1200 as a result of today’s announcement,” the statement said.
