The
Cabinet Committee on Economic Affairs (CCEA) Union Cabinet chaired by Prime
Minister Shri Narendra Modi has approved the Fixation of Nutrient Based Subsidy
(NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the year
2017-18.
Government
has been implementing Nutrient Based Subsidy (NBS) Policy for decontrolled
P&K fertilizers. Under this policy, the subsidy on Phosphatic and Potassic
(P&K) fertilizers is announced by the Government on annual basis for each
nutrient i.e., Nitrogen (N), Phosphorous (P), Potash (K) and Sulphur (S) on per
kg basis which is converted into subsidy per tonne depending upon the nutrient
content in each grade of the fertilizers. These rates are determined taking
into account the international and domestic prices of P&K fertilizers,
exchange rate, inventory level in the country etc.
The CCEA in
its meeting held on 31st March, 2017 decided to fix the NBS rates
for 2017-18. As compared to 2016-17, the subsidy for the period 2017-18 has
decreased from Rs. 13.241/kg to 11.997/kg (decrease of Rs. 1.244/kg) for P,
from Rs. 15.470/kg to 12.395/kg (decrease of Rs. 3,075/kg) for K whereas the
subsidy of N has increased from Rs. 15.854/kg to 18.989/kg (an increase of Rs.
3.135/kg) and of S from Rs. 2.044/kg to 2.240/kg (an increase of Rs. 0.196/kg).
During
2016-17, the estimated consumption of P&K fertilizers is 279.8 LMT. Based
on the assumption that the consumption of P&K fertilizers during 2017-18
would remain the same, the estimated subsidy requirement at proposed rates
would be Rs. 19,848.99 Crores which is lower than 2016-17 (Rs. 20,688.43
Crores) by Rs. 839.44 crores.
This is in
continuation with the reforms being undertaken in the fertilizers sector over
the past two and a half years including DBT for subsidy payment, neem coating
of Urea, reduction in MRP of P&K fertilizers to promote balanced use of
nutrients, removal of minimum production criteria for manufacturers of Single
Super Phosphate (SSP).
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AKT/VBA/SH
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