Budget Allocation for Fertilisers Increased to Rs 1.91 Trillion

29 Mar 2025 CW Team

Under the Nutrient Based Subsidy (NBS) scheme, the budget has also been revised from Rs 450 billion to Rs 543.1 billion, ensuring no reduction in subsidy support. Additionally, the Pradhan Mantri Krishi Sinchayee Yojana has been extended until 2025-26, with an overall outlay of Rs 930.68 billion.

To maintain a steady supply of fertilisers, the Department of Agriculture and Farmers Welfare (DA&FW), in coordination with state governments, assesses fertiliser demand before each cropping season. The Integrated Fertiliser Monitoring System (iFMS) tracks the movement of subsidised fertilisers nationwide, ensuring timely distribution.

Urea continues to be sold at a fixed Maximum Retail Price (MRP) of Rs 242 per 45 kg bag, with the government covering the subsidy difference. Meanwhile, for Phosphatic & Potassic (P&K) fertilisers, prices are market-driven under the NBS scheme, though the government ensures reasonable pricing.

To address supply challenges due to geopolitical disruptions, a one-time special subsidy of Rs 3500 per MT for Di-Ammonium Phosphate (DAP) has been extended until March 31, 2025, ensuring affordable prices for farmers.

Additionally, the government is actively engaging with resource-rich countries to secure long-term fertiliser supplies and facilitate agreements between Indian and foreign fertiliser companies to maintain cost-effective imports.

This update was provided by Union Minister of State for Chemicals and Fertilisers Smt. Anupriya Patel in a written reply in Lok Sabha.

(PIB)

The final budget allocation for the Department of Fertilisers has been raised to Rs 1.91 trillion for FY 2024-25, up from the initial estimate of Rs 1.68 trillion, following Supplementary Demands for Grants passed by Parliament. Under the Nutrient Based Subsidy (NBS) scheme, the budget has also been revised from Rs 450 billion to Rs 543.1 billion, ensuring no reduction in subsidy support. Additionally, the Pradhan Mantri Krishi Sinchayee Yojana has been extended until 2025-26, with an overall outlay of Rs 930.68 billion. To maintain a steady supply of fertilisers, the Department of Agriculture and Farmers Welfare (DA&FW), in coordination with state governments, assesses fertiliser demand before each cropping season. The Integrated Fertiliser Monitoring System (iFMS) tracks the movement of subsidised fertilisers nationwide, ensuring timely distribution. Urea continues to be sold at a fixed Maximum Retail Price (MRP) of Rs 242 per 45 kg bag, with the government covering the subsidy difference. Meanwhile, for Phosphatic & Potassic (P&K) fertilisers, prices are market-driven under the NBS scheme, though the government ensures reasonable pricing. To address supply challenges due to geopolitical disruptions, a one-time special subsidy of Rs 3500 per MT for Di-Ammonium Phosphate (DAP) has been extended until March 31, 2025, ensuring affordable prices for farmers. Additionally, the government is actively engaging with resource-rich countries to secure long-term fertiliser supplies and facilitate agreements between Indian and foreign fertiliser companies to maintain cost-effective imports. This update was provided by Union Minister of State for Chemicals and Fertilisers Smt. Anupriya Patel in a written reply in Lok Sabha. (PIB)

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