Government extends special package of ₹3,500 per ton for DAP fertilizer
The special package adds ₹3,500 per metric tonne in subsidies over and above the existing NBS scheme, which has governed subsidies for phosphatic and potassic (P&K) fertilisers since April 2010.
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In a major relief for farmers, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal from the Department of Fertilizers to extend the one-time special package on Di-Ammonium Phosphate (DAP) beyond the Nutrient-Based Subsidy (NBS). The extension includes an additional ₹3,500 per ton subsidy and will be effective from January 1, 2025, until further notice. This initiative, with an estimated financial outlay of ₹3,850 crore, ensures that DAP remains available to farmers at an affordable price of ₹1,350 per 50 kg bag.
The Cabinet made this decision in its latest meeting. The package builds on an earlier decision from July 2024, which allocated ₹2,625 crore for DAP subsidies for the period from April to December 2024. With the latest extension, the total amount committed since April 2024 now exceeds ₹6,475 crore.
The special package adds ₹3,500 per metric tonne in subsidies over and above the existing NBS scheme, which has governed subsidies for phosphatic and potassic (P&K) fertilisers since April 2010. The extension aims to ensure the continued availability of DAP at reasonable prices for farmers, Information and Broadcasting Minister Ashwini Vaishnaw informed reporters.
Amid complaints of DAP shortages and anticipation of price hikes by fertiliser companies, the government’s move highlights its commitment to providing affordable fertilisers to farmers, despite global market challenges.
