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HomePosts Tagged "Department of Fertilizers"
Agro chems – Fertilizers, AgroPolicy, Finance, India, Schemes - Govt

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.

One-time Special Package is for the period

Agro chems – Fertilizers, AgroPolicy, Sugar industry

PDM manufacturers can also claim subsidy at Rs 345/Ton at present rates under Nutrients Based Subsidy Scheme (NBS) of Department of Fertilizers.

The Central Government has facilitated mutually agreed price of Potassium Derived from Molasses (PDM) at Rs 4263/MT for sale by sugar mills to fertilizer companies for the current year. In addition, PDM Manufacturers can also claim subsidy at Rs. 345/Ton at present rates under Nutrients Based Subsidy Scheme (NBS) of Department of Fertilizers. Now, both, sugar mills and fertilizer companies are discussing modalities to enter into long-term sale/purchase agreement on PDM.

PDM, a potassium rich fertilizer derived from ash in molasses-based distilleries is a by-product of sugar-based ethanol industry. These distilleries produce a waste chemical called spent wash during production of ethanol which is burnt in Incineration Boiler (IB) generating Ash to achieve Zero Liquid Discharge (ZLD). The potash-rich ash can be processed to produce PDM having 14.5 per cent potash content and can be used by farmers in field as an alternative to MOP (Muriate of Potash with 60 per cent potash content).

Currently, potash as a fertilizer is totally imported in the form of MoP. Production of PDM domestically will reduce import dependency and will make India Atmanirbhar (Self-reliant) in production of PDM. Presently about 5 LMT of Potash Ash generated from ethanol distilleries is being sold domestically whereas the potential to produce this Ash could reach up to 10-12 LMT.

Manufacturing and sale of PDM is going to be another revenue stream for sugar mills to add to their cash flows and also to make payment to farmers in timely manner. It is another initiative of Central Government to reduce import dependence in Fertilizer Sector.

PDM manufacturers can also claim subsidy at