Cabinet approves extension of One-time Special Package on Di-Ammonium Phosphate

Cabinet approves extension of One-time Special Package on Di-Ammonium Phosphate (DAP)

28 grades of P&K fertilizers are made available to farmers at subsidized prices through fertilizer manufacturers/importers.

The Union Cabinet, chaired by the Prime Minister Shri 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 upto Rs. 3,850 cr.

Background

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 top most 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. Inspite 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 upto Rs. 3850 cr. 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.

Benefits: Availability of DAP to farmers at subsidized, affordable and reasonable prices will be ensured.

Implementation Strategy and targets: The Special package on DAP @ Rs 3,500 per MT will be provided for the period 01.01.2025 till further orders over and above the approved NBS subsidy to ensure smooth availability of DAP fertilizer to the farmers at affordable price.