In an effort to mitigate the financial burden on Indian farmers and maintain the affordability of crucial fertilisers, the Indian government has unveiled significant alterations to subsidy rates. These changes encompass nitrogen (N), phosphorus (P), potassium (K), and sulphur (S), with a focus on sustaining accessible fertiliser prices despite escalating global costs.
During the October-March period, subsidies for N, P, K, and S have seen reductions in comparison to the April-September timeframe. Specifically, the nitrogen subsidy has decreased by 38%, phosphorus by 49%, potassium by a substantial 84%, and sulphur by 32.5%.
Notably, urea continues to be highly subsidized at a rate of Rs 266 per bag. Complex fertilisers, exemplified by DAP, will be available at a cost of Rs 1,350 per bag, while NPK variants will have an average price of Rs 1,470 per bag, and MOP will be priced at Rs 1,655 per bag.
The subsidy revisions are expected to impose a financial burden of Rs 22,303 crore on the government. The total subsidy allocated for non-urea fertilisers is projected to reach approximately Rs 60,000 crore, marking a significant increase from the initial estimate of Rs 44,000 crore.
While international fertiliser prices have exhibited slight decreases, they remain elevated. To shield Indian farmers from the volatility of these costs, the government is steadfastly providing subsidies to maintain price stability.
The government has pledged its commitment to ensuring a continuous supply of subsidised fertilisers at reasonable rates for farmers. Various grades of P&K fertilisers will be made available to farmers through manufacturers and importers, aiming to alleviate the economic pressures on the agricultural sector.