Centre's fertiliser subsidy bill up Rs14,775 crore this Kharif season

The centre will provide additional fertiliser subsidy totaling Rs14,775 crore in the Kharif season 21, which include Rs9,125 crore subsidy for DAP and Rs5,650 crore subsidy for NPK based complex fertiliser. The additional subsidy of Rs14,775 crore has taken the government’s Kharif season 21 subsidy bill to Rs42,275 crore from Rs27,500 crore in the previous Kharif season.

The subsidy on P&K fertilisers, including DAP, has been increased more than 100 per cent till Kharif season 21. Subsidy of DAP fertiliser has been increased from Rs500 per bag to Rs1,200 per bag, which is an increase of around 140 per cent. Thus, despite the rise in international market prices of DAP, it has been decided to continue selling it at the older price of Rs1,200 per bag and the central government has decided to bear all the burden of price hike on this account. 
Government is making available fertilisers, namely urea and P&K fertilisers (including DAP, MOP and SSP) to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is being governed by the existing NBS scheme.
The subsidy is released to fertiliser companies as per NBS rates so that they can make available fertilisers to farmers at affordable price.
In the last few months, the international prices of raw materials of DAP and other P&K fertilisers increased sharply. Prices of finished DAP in the international market have also increased proportionately. So the actual price of a DAP bag increased to Rs2,400, gainst the earlier selling price of Rs1,900 after considering the subsidy of Rs500 per bag.