The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of the One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the Nutrient-Based Subsidy (NBS) at ₹3,500 per metric ton (MT). The extension, effective from January 1, 2025, will remain in force until further orders to ensure the sustainable availability of DAP at affordable prices for farmers. The estimated budgetary allocation for this extension is ₹3,850 crore.
Background
Under the NBS Scheme, operational since April 1, 2010, 28 grades of Phosphatic and Potassic (P&K) fertilizers, including DAP, are made available to farmers at subsidized prices through manufacturers and importers. Despite global market volatility and geopolitical challenges, the government has maintained stable prices for DAP, prioritizing farmers’ welfare.
In July 2024, the Cabinet approved a one-time Special Package for DAP from April 1, 2024, to December 31, 2024, with a financial allocation of ₹2,625 crore. The latest decision brings the total allocation under this package since April 2024 to ₹6,475 crore.
Key Benefits
Affordable Fertilizer: The extension ensures that farmers continue to access DAP at subsidized and reasonable prices, reducing the financial burden on agricultural operations.
Stability in Supply: It guarantees the smooth availability of DAP during critical agricultural seasons like Kharif and Rabi.
Implementation Strategy
The special package provides an additional ₹3,500 per MT subsidy on DAP over the existing NBS rates, effective from January 1, 2025, until further notice.
This measure will help sustain fertilizer availability at affordable rates, fostering agricultural growth and supporting farmers across the country.
The government’s decision reinforces its commitment to prioritizing the welfare of farmers and ensuring the agricultural sector’s stability amidst global challenges.
