Centre considering subsidy to phosphatic and potassic fertilisers

The Centre is considering subsidies to phosphatic and potassic (P&K) fertilisers to safeguard the interests of farmers during the Covid-19 crisis and amid rise in global prices of raw materials.

Unlike urea, P&K fertilisers are decontrolled products. The prices are fixed by the manufacturers and the government gives them fixed subsidies each year. For the current fiscal year, subsidies for P&K fertilisers have been kept unchanged.

However, for the last few months, the international prices of raw materials of Di-ammonium Phosphate (DAP) and other P&K fertilisers have increased sharply. Prices of finished DAP, etc in the international market have also risen proportionately.

"The government of India is also considering the subsidy rates to offset the rise in international prices of raw materials of P&K fertilisers and DAP in order to support the farmers'' cause and lessen the financial burden on them," the ministry noted.

The government is fully aware of the situation, and it is being closely monitored at a very high level in the government, it said.

"Despite this sharp increase, DAP prices in India were not increased by the companies till last month. However, some companies have now increased the DAP price," the Ministry of Chemicals and Fertilisers said.

In accordance with its farmer-friendly approach, the ministry said the government is committed to ensuring the availability of P&K fertilisers to farmers at affordable prices, it added.

The government is taking all necessary steps to safeguard the interests of farmers during the Covid-19 crisis.

On the pricing front of DAP, the government has already asked all the fertiliser companies to sell their old stocks of DAP, etc at old prices only, it said.