Cabinet okays extension of subsidy on DAP fertilizer for farmers

New Delhi, Jan 1 (IANS) The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal of the Department of Fertilizers for the extension of a one-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy at Rs 3,500 per metric tonne (MT) for the period from January 1, 2025, till further orders to ensure sustainable availability of DAP at affordable prices to the farmers, according to an official statement issued on Wednesday. 

The decision will ensure greater availability of DAP to farmers at subsidized, affordable and reasonable prices, the statement said.

The Special package on DAP at Rs 3,500 per MT will be provided for the period from January 1, 2025, till further orders over and above the approved NBS subsidy to ensure smooth availability of DAP fertilizer to the farmers at an affordable price, the statement added.

As many as 28 grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers and importers. The subsidy on P&K fertilizers is governed by NBS Scheme with effect from April 1, 2010.

“Continuing top most priority in keeping farmers’ welfare in firm focus, the Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertilizer unchanged,” the statement said.

Despite the geo-political constraints and volatility of global market conditions, the government has kept its commitment towards a farmer-friendly approach by ensuring the availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25.

The Cabinet in July 2024 had approved a one-time Special Package on DAP beyond the NBS subsidy at Rs 3,500 per MT from April 1, 2024, to December 31,.2024 with an approximate financial implication of Rs 2,625 crore.

Meanwhile, the total farm area sown in the country under various rabi crops in the ongoing season so far has increased to 614.94 hectares, up from 611.8 lakh hectares in the same period of the previous year, according to official figures released by the Ministry of Agriculture & Farmers’ Welfare.

The area sown under wheat has shot up to 319.74 lakh hectares (ha) compared to 313.00 lakh ha during the corresponding period last year which is expected to result in higher production of the cereal for the season. The winter rain is also expected to benefit the crop, according to farm experts.

The total area under pulses has been reported at 136.13 lakh ha while 48.55 lakh ha area has been sown under Shri Anna and Coarse Cereals and 96.15 lakh ha area has been covered under Oilseeds.

The increase in the total sown area is expected to increase the production of essential food goods and would help bring down inflation in the economy.

--IANS

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