Indian government extends special DAP subsidy for farmers

The proposal of the Department of Fertilisers for the extension of the One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy at ₹3,500 (~$42) per MT has been approved by the Indian Cabinet, chaired by Prime Minister Narendra Modi. This extension will be effective from January 1, 2025, until further orders, aiming to ensure the sustainable availability of DAP at affordable prices for farmers. The tentative budgetary requirement for this measure is estimated to be up to ₹3,850 crore (~$46.2 million).

Under the National Bio-Technology Scheme (NBS), 28 grades of P&K fertilisers are made available to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by NBS Scheme w.e.f April 1, 2010. Continuing topmost priority in keeping farmers’ welfare in firm focus, government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertiliser unchanged. Inspite of geo-political constraints and volatility of global market conditions, government kept its commitment towards farmer friendly approach by ensuring availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25, the cabinet said in a press release.

In July 2024, the Cabinet approved a one-time Special Package for DAP, extending the subsidy of ₹3,500 (~$42) per MT from April 1, 2024, to December 31, 2024, with an estimated cost of ₹2,625 crore ($31.5 million). In its meeting held on January 1, 2025, the Cabinet approved the extension of the Special Package with an estimated financial implication of up to ₹3,850 crore (~$46.2 million). This brings the total amount approved for the Special Package on DAP since April 2024 to over ₹6,475 crore (~$77.4 million), aimed at ensuring the availability of DAP at affordable prices to farmers.

The extension of this special package will ensure that DAP remains available to farmers at subsidised, affordable, and reasonable prices.

ALCHEMPro News Desk (HU)