Govt okays subsidy rates for P&K fertilisers for FY21

The Centre on Wednesday approved the fixation of Nutrient Based Subsidy(NBS) rates for Phosphatic and Potassic Fertilisers (P&K) for the year 2020-21, with an estimated burden of Rs 22,186 crore on the central exchequer.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi took this decision.

The approved rates for NBS are - 18.789 for N, 14.888 for P, 10.116 for K and 2.374 for S.

CCEA has also approved the inclusion of a complex fertiliser namely Ammonium Phosphate (NP 14:28:0:0) under the NBS scheme.

The expected expenditure for release of subsidy on Phosphatic and Potassic (P&K) Fertilisers during 2020-21 will be Rs 22,186.55 crore, Union Minister for Information and Broadcasting Prakash Javadekar told reporters here.

The subsidy will be provided on the subsidy rates approved by the CCEA to the fertiliser companies.

The Central government is making available fertilisers, namely Urea and 21 grades of P&K fertilisers to farmers at subsidized prices through fertiliser manufacturers and importers.

In case of urea, the government fixes the maximum retail price (MRP). The difference between the production cost and the MRP is reimbursed to manufacturers.

(with inputs from PTI)