The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the extension of the One-Time Special Package on Di-Ammonium Phosphate (DAP) beyond the Nutrient-Based Subsidy (NBS) scheme at ₹3,500 per Metric Ton (MT). This subsidy will remain effective from January 1, 2025, until further orders, ensuring the sustainable availability of DAP fertilizer at affordable prices for farmers.
Financial Implications
- Estimated Budget Requirement: ₹3,850 crore (approximate).
- Total Subsidy since April 2024: Over ₹6,475 crore.
Background of the DAP Subsidy Initiative
- The NBS Scheme was introduced on April 1, 2010, to subsidize 28 grades of Phosphatic & Potassic (P&K) fertilizers.
- Despite global geopolitical tensions and price volatility, the government has maintained stable prices for DAP fertilizer.
- In July 2024, the Cabinet approved a one-time special DAP subsidy of ₹3,500 per MT from April 1, 2024, to December 31, 2024, costing approximately ₹2,625 crore.
- The latest decision extends this subsidy for the period beyond January 1, 2025, with an additional budgetary allocation of approximately ₹3,850 crore.
Key Benefits of the Extended DAP Subsidy
- Affordable Pricing: Farmers will continue to receive DAP fertilizer at subsidized, reasonable, and stable prices.
- Sustained Availability: Ensures consistent supply of DAP fertilizer across the nation, especially during Kharif and Rabi seasons.
- Farmer Welfare: Strengthens the government’s commitment to agricultural productivity and farmer-friendly policies.
Implementation Strategy
- The ₹3,500 per MT subsidy will remain over and above the existing NBS subsidy.
- The extension will ensure the smooth availability of DAP fertilizers across all regions of India.
Conclusion
The extension of the Special DAP Subsidy demonstrates the Government of India’s commitment to supporting farmers, stabilizing agricultural input costs, and boosting productivity despite global uncertainties.
This initiative is a crucial step towards achieving food security and sustainable agricultural development in India.
