New Delhi: Government Wednesday fixed the subsidy rates of phosphatic and potassic (P&K) fertlisers for the next fiscal with an estimated outgo of Rs 21,274 crore.
The Cabinet Committee on Economic Affairs (CCEA) approved fixation of Nutrient Based Subsidy (NBS) rates for P&K fertlisers for 2016-17, due to decreasing trend in global prices of finished fertlisers and raw materials.
"At the same level of consumption of P&K fertilisers (about 310.44 lakh tonnes) during 2016-17 as in 2015-16, the total subsidy implication on P&K fertilizers for 2016-17 at proposed rates works out to be about Rs 21,274 crore," an official statement said.
The CCEA approved Rs 15.854 per kg for Nitrogen (N), Rs 13.241 per kg for phosphorous (P), Rs 15.470 per kg potash (P) and Rs 2.044 per kg for sulphur (S).
The government has been implementing NBS policy for decontrolled P&K fertlisers since April 2010.
Under this policy, the subsidy on P&K fertilisers is announced annually for each nutrient i.E. Nitrogen (N), Phosphorous (P), Potash (K) and Sulphur (S) on per kg basis which is converted into subsidy per tonne depending upon the nutrient content in each grade of the fertilisers.
These rates are determined taking into account the international and domestic prices of P&K fertilisers, exchange rate, inventory level in the country etc.