Modi government approves Rs 1.08 lakh crore package for Kharif Fertilizer subsidy
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New Delhi, May 18: The Union Cabinet on May 17 approved a Rs 1.08 lakh crore package for Fertilizer subsidy for the April-September kharif season. Of the Rs 1.08 lakh crore subsidy, Rs 70,000 crore is for urea and Rs 38,000 crore for Di-ammonium Phosphate, or DAP.
Briefing the media at the conclusion of the Cabinet's meeting, Mansukh Mandaviya, the minister of chemicals and Fertilizers, said while the total subsidy amount was lower than last year, it was still higher than normal, confirming what CNBC-Awaaz had reported earlier, quoting sources.
The Cabinet chaired by Hon'ble PM Shri @narendramodi ji approves ₹70,000 crore subsidy for Urea and ₹38,000 crores for Diammonium phosphate (DAP) to make a total of ₹1.08 lakh crore-fertilizer subsidy in the Kharif season for farmers. #CabinetDecisions pic.twitter.com/4IRQ1hLJXo
— Darshana Jardosh (@DarshanaJardosh) May 17, 2023
"The situation in 2022-23 was such that Fertilizer subsidy had to be increased sharply (due to the Russia-Ukraine war)," Mandaviya said, adding that the government had ensured rising global Fertilizer prices did not hurt India's farmers. The Fertilizer minister went on to add that the reduced Fertilizer subsidy of Rs 1.08 lakh crore for the April-September kharif season will not lead to higher prices for farmers. "The Cabinet decision will have the two-fold benefit of ensuring availability of DAP and other P&K Fertilizers to farmers at subsidized, affordable, and reasonable prices during Kharif season and will also ensure rationalization of subsidy on P&K Fertilizers," the government said in a statement.
As per the 2023-24 Budget documents, the revised estimate for the Fertilizer subsidy given in 2022-23 is Rs 2.25 lakh crore. However, Mandaviya said on May 17 that the Centre's Fertilizer subsidy bill in 2022-23 was Rs 2.54 lakh crore.