Cabinet rolls over nutrient-based subsidy rates for fiscal’s second half

New Delhi, Dec 7 (IANS) The Cabinet Committee on Economic Affairs on Wednesday decided to roll over Nutrient-Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilisers for the second half of the current fiscal.

It has also been decided to ensure that any fall in the international prices should be reflected by the fertilisers companies with subsequent reduction in maximum retail prices.

The subsidy rate for each kilogram of nitrogen is Rs 15.85 while the same for phosphorus is Rs 13.24. For one kg of potash, the subsidy rate stands at Rs 15.47 while the rate is Rs 2.04 per kg of sulphur.

With fall in international prices, the MRP of P&K fertilisers was brought down in July. The fertiliser companies reduced prices of a 50 kg bag of Muriate of Potash by Rs 250, Di-Ammonium Phosphate by Rs 125 and complex fertilisers by Rs 50.

“This is expected to result in increase in consumption of P&K fertilisers which will result in balanced fertilisation. As a result the yield from the crops will increase resulting in enhanced income to the farmers,” a statement added.