The Union Cabinet has given its nod to the Department of Fertilizers’ proposal for fixing the Nutrient Based Subsidy (NBS) rates for Phosphatic and Potassic (P&K) fertilizers for the upcoming Rabi Season 2023-24. A press release on this decision was issued on October 25, 2023.
This initiative, which will be in effect from October 1, 2023, to March 31, 2024, is expected to incur an expenditure of Rs. 22,303 crore.
The primary objective of this decision is to ensure the availability of P&K fertilizers to farmers at subsidized, affordable, and reasonable prices, fostering agricultural productivity and growth.
The NBS scheme, which has been in operation since April 1, 2010, provides subsidies on 25 grades of P&K fertilizers to farmers, making them available at affordable prices through authorized fertilizer manufacturers and importers. The decision to recalibrate and approve NBS rates for Rabi Season 2023-24 comes in response to recent trends in international fertilizer and input prices, including Urea, DAP, MOP, and Sulphur.
By rationalizing the subsidy on P&K fertilizers, the government aims to address the fluctuations in global fertilizer prices, ensuring that Indian farmers have access to these essential inputs at reasonable costs.