Cabinet approves Rs. 38,000-cr subsidy for non-urea fertilisers this kharif.

In total, the central government will spend Rs. 1.08 trillion in subsidies during kharif 2023-24, which is almost 62 per cent of the Budget Estimates for financial year 2023-24 (FY24). Of the Rs. 1.08 trillion, around Rs. 70,000 crore is for urea, while the rest is for non-urea fertilisers till September.

In Rabi 2022, the government had provided around Rs. 52,000 crore for non-urea fertilisers. The lower subsidy in 2023-24 kharif is due to falling global and domestic rates.

However, the full impact of the falling prices will be reflected in total subsidy calculations after a lag of not less than six months and most of the current stock in use was built when prices were higher, officials said.

For non-urea fertilizers in kharif 2023, according to Chemicals and Fertilizers Minister Mansukh Mandaviya, a per kilogram subsidy of Rs. 76 has been approved for nitrogen (down almost 22 per cent from the second half of FY23), Rs. 41 per kg for phosphorus (down 39 per cent from the second half of FY23 or rabi of FY23), Rs. 15 per kg for potassium (down 36 per cent from the last revision), and Rs. 2 per kg for sulphur, a reduction of 67 per cent from the last revision.

The rationalisation in subsidy is primarily due to the cooling of international prices and a drop in energy costs.

BS