The Union Cabinet, led by Prime Minister Narendra Modi, has approved the extension of the One-time Special Package for Di-Ammonium Phosphate (DAP) under the Nutrient Based Subsidy (NBS) scheme. This decision aims to ensure the sustainable availability of DAP at affordable prices for farmers.
Key Details of the Extension
- Effective Date: The extended package will be effective from January 1, 2025.
- Subsidy Amount: Rs 3,500 per metric ton (MT) will be provided as part of the Special Package.
- Duration: The subsidy will remain in place until further orders, ensuring a continuous supply of DAP to farmers.
Objective of the Extension
The primary goal of this extension is to maintain price stability and mitigate the impact of global market fluctuations and geopolitical tensions. The government aims to provide farmers with a consistent supply of affordable DAP, which is crucial for agricultural productivity.
Special Package in Addition to NBS Subsidy
The Rs 3,500 per MT subsidy will be applied in addition to the existing NBS subsidy. This will help ensure that farmers continue to receive DAP at affordable prices for the duration of the package.
Government’s Commitment to Farmers’ Welfare
This extension is part of the government’s ongoing efforts to support farmers by ensuring their access to essential agricultural inputs. Since 2010, the government has been providing subsidized prices for various grades of Phosphatic and Potassic (P&K) fertilizers, including DAP, under the NBS Scheme.
Previous Government Measures
In July 2024, the Cabinet approved a similar One-time Special Package for DAP, covering the period from April 1, 2024, to December 31, 2024, with an estimated financial implication of Rs 2,625 crore. This package continued the government’s farmer-friendly approach, stabilizing DAP prices during critical agricultural seasons.
Multiple-Choice Questions (MCQs):
- What is the subsidy amount approved for DAP under the extended One-time Special Package?
- a) Rs 2,000 per metric ton
- b) Rs 3,500 per metric ton
- c) Rs 4,000 per metric ton
- d) Rs 5,000 per metric ton
- When will the extended subsidy for DAP come into effect?
- a) April 1, 2025
- b) January 1, 2025
- c) July 1, 2025
- d) December 1, 2025
- What is the purpose of the One-time Special Package for DAP?
- a) To reduce the price of DAP for farmers
- b) To maintain price stability and address market fluctuations
- c) To increase the production of DAP
- d) To import DAP from foreign countries
- Since when has the government been providing subsidized fertilizers under the NBS Scheme?
- a) 2005
- b) 2010
- c) 2015
- d) 2020
- What was the financial implication of the similar One-time Special Package approved in July 2024?
- a) Rs 1,500 crore
- b) Rs 2,625 crore
- c) Rs 3,500 crore
- d) Rs 5,000 crore