As part of its attempts to offer soil nutrients to farmers at an affordable price, the central government approved a subsidy of Rs 60,939.23 crore for phosphatic and potassic fertilizers (P&K), including DAP, during the first six months of this fiscal.

According to an official statement, the Union Cabinet, led by Prime Minister Narendra Modi, approved the proposal for Nutrient Based Subsidy (NBS) prices for Phosphatic and Potassic fertilisers for the Kharif Season, which runs from April 1 to September 30. "The Cabinet has approved a subsidy of Rs 60,939.23 crore for the NBS Kharif2022," it said, "including support for indigenous fertiliser (SSP) through freight subsidy and additional support for indigenous manufacture and DAP imports."

The Union government has absorbed the majority of the increase in worldwide pricing of Di-Ammonium Phosphate (DAP) and its raw materials. "The government has decided to grant a subsidy of Rs 2,501 per bag on DAP instead of the previous subsidy of Rs 1,650 per bag, which is a 50% increase over the subsidy rates last year," according to the statement.

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