The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Fertilizers for the extension of a One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy @ Rs 3,500 per MT for the period from 01.01.2025 till further orders to ensure sustainable availability of DAP at affordable prices to the farmers. The tentative budgetary requirement for the above would be approximately up to Rs. 3,850 cr.
28 grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by the NBS Scheme w.e.f 01.04.2010. Continuing with the top priority of keeping farmers’ welfare in firm focus, the Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertilizer unchanged. In spite of geo-political constraints and volatility of global market conditions, the Government kept its commitment to a farmer-friendly approach by ensuring the availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25. In July 2024, the Cabinet approved a one-time Special Package on DAP beyond the NBS subsidy @ Rs 3,500 per MT from 01.04.2024 to 31.12.2024, with an approximate financial implication of Rs 2,625 cr. The Cabinet in its meeting has approved to extension of the Special Package on DAP with approximate financial implications up to Rs. 3850 cr. With this, the total amount of special package approved for DAP since April 2024 would be more than Rs. 6,475 cr. to ensure the availability of DAP at affordable prices to farmers.