Centre to increase DAP subsidy by 140% to provide old rate fertilizer to farmers despite international price hike
Government on Wednesday decided to hike the DAP subsidy by 140 per cent to provide the fertiliser to farmers at old rate despite international price rise.
The subsidy has been increased from 500 rupees per bag to 1200 rupees per bag. Now, despite the rise in international market prices, it will continue to available at the older price of 1200 rupees per bag.
A decision in this regard was taken during a high level meeting chaired by Prime Minister Narendra Modi on the issue of fertiliser prices. Mr Modi stressed that farmers should get fertilisers at old rates despite the international rise in prices.
He remarked that his government is committed to the welfare of farmers and will take all efforts to ensure that farmers do not have to face the brunt of price-rise.
Recently, the international prices of phosphoric acid, ammonia and others used in DAP have gone up by 60 to 70 percent. So, the actual price of a DAP bag is currently 2400 rupees which could be sold by Fertilizer companies at 1900 rupees after considering earlier announced subsidy of 500 rupees. With today’s decision, the farmers will continue to get a DAP bag for 1200 rupees.
The Central Government spends about 80 thousand crore rupees on subsidies for chemical fertilisers every year. With the increase in subsidy in DAP, Government of India will spend an additional 14,775 crore rupees as subsidy in Kharif season.
This is the second major decision in the farmers’ interest in a week, after directly transferring 20 thousand 667 crore rupees in Farmers’ account under PM-KISAN