HomeInputsAgro chems – FertilizersCabinet approves extension of One-time Special Package on DAP beyond the NBS subsidy

Cabinet approves extension of One-time Special Package on DAP beyond the NBS subsidy

One-time Special Package is for the period from 01.01.2025 till further orders to ensure sustainable availability of DAP at affordable prices to the farmers.

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the proposal of the Department of Fertilizers for extension of One-time Special Package on Di-Ammonium Phosphate (DAP) beyond the NBS subsidy @ Rs 3,500 per MT for the period from 01.01.2025 till further orders to ensure sustainable availability of DAP at affordable prices to the farmers. The tentative budgetary requirement for above would be approximately up to Rs 3,850 crore.

28 grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers/importers. The subsidy on P&K fertilizers is governed by NBS Scheme w.e.f 01.04.2010. Continuing topmost priority in keeping farmers’ welfare in firm focus, Government of India has extended a massive relief to farmers in keeping the price of Di-Ammonium Phosphate (DAP) fertilizer unchanged. In spite of geo-political constraints and volatility of global market conditions, Government kept its commitment towards farmer friendly approach by ensuring availability of DAP to farmers at affordable prices for Kharif and Rabi 2024-25.

Cabinet in July 2024 had approved one-time Special Package on DAP beyond the NBS subsidy @ Rs 3,500 per MT from 01.04.2024 to 31.12.2024 with approximate financial implication of Rs 2,625 cr. The Cabinet in its meeting held today (1.1.2025) has approved to extend the Special Package on DAP with approximate financial implication up to Rs. 3850 crores. With this the total amount of special package approved for DAP since April 2024 would be more than Rs. 6,475 cr. to ensure availability of DAP at affordable price to farmers.  Availability of DAP to farmers at subsidized, affordable and reasonable prices will be ensured.

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