To offset the price rise in international market, the Centre will offer 140% increase in subsidy on fertilisers, said Prime Minister Narendra Modi’s office. The government will spend an additional ₹ 14,775 crore towards this subsidy.
The PM’s office said in a statement, “Prime Minster Narendra Modi said farmers should get fertilisers at old rates despite the international price rise… The welfare of farmers is at the core of government’s efforts.”
Farmers will get a subsidy of ₹ 1,200 per bag of fertiliser instead of the current ₹ 500. Also the farmers will continue to get a bag of Di-ammonium Phosphate for ₹ 1,200.
The decision on rising the fertiliser subsidy came at a high-level meeting conducted by the Prime Minister this evening.
It was said the price of fertilisers is going up due to the international rising prices of phosphoric acid, ammonia etc. The Prime Minister pointed out that farmers “should get fertilisers at old rates” despite the international rise in prices. Calling it a “historic decision”, the PM’s Office said, “The amount of subsidy per bag has never been increased so much at once”.
The statement also said, “Last year, the actual price of DAP was ₹ 1,700 per bag. In which the Central Government was giving a subsidy of ₹ 500 per bag. So the companies were selling fertilizer to farmers for ₹ 1200 per bag.”
The statement further added “The international prices of phosphoric acid, ammonia etc. used in DAP have gone up by 60% to 70%. So the actual price of a DAP bag is now ₹ 2400, which could be sold by Fertilizer companies at ₹ 1900 after considering a subsidy of ₹ 500. With today’s decision, farmers will continue to get a DAP bag for ₹ 1200.”
PM Narendra Modi stated, that his government is committed to the welfare of farmers and will take all efforts to ensure that they do not have to face the problems for the prices rising.
