The Union Cabinet approved an additional subsidy of Rs 40,000 crore for phosphate-based fertilisers for the upcoming kharif season (April-September), seeking to shield farmers from any additional burden due to a sharp increase in input costs globally. This means farmers will continue to get the Diammonium Phosphate at the current rate and the government will bear the entire burden of the price impact due to global conditions.
Against the allocation of Rs 21,000 crore for the first half of the year, the government will now spend Rs 61,000 crore towards subsidy on phosphate-based fertilisers. The hike in Nutrient Based Subsidy is likely to push the government's fertiliser subsidy bill to around Rs 2 lakh crore, based on current price trends. Government officials said in several segments there is a possibility of a further increase in international prices due to the war in Russia.