Union Cabinet Approves Extension of Special Package for Di-Ammonium Phosphate (DAP) Subsidy

The Union Cabinet has approved the extension of a one-time special package for Di-Ammonium Phosphate (DAP) fertilizer beyond the Nutrient-Based Subsidy (NBS). The package, amounting to ₹3,500 per metric ton (MT), will remain in effect from January 1, 2025, until further notice.

This decision ensures the continued availability of DAP at subsidized and affordable prices for farmers, with a tentative budgetary requirement of approximately ₹3,850 crore.

Under the NBS scheme introduced on April 1, 2010, 28 grades of Phosphatic and Potassic (P&K) fertilizers, including DAP, are made available to farmers at subsidized rates. Despite challenges posed by global geopolitical tensions and market volatility, the government has prioritized farmer welfare, ensuring the prices of DAP remain stable and affordable.

Previously, in July 2024, the Cabinet approved a one-time special package for DAP at ₹3,500 per MT for the period from April 1 to December 31, 2024, with a financial implication of ₹2,625 crore. With the latest extension, the total special package allocated for DAP since April 2024 exceeds ₹6,475 crore.

This extended subsidy will:

1. Ensure the availability of DAP at affordable and reasonable prices.
2. Provide financial relief to farmers, enabling them to sustain agricultural operations without undue economic burden.
3. Support stable agricultural productivity, critical for India’s food security.