Nutrient based subsidy on mixed fertilizers

No subsidy on mixed fertilizers is provided by Government directly. However, manufacturers of mixture fertilizers are eligible to source subsidized Phosphatic and Potassic (P&K) fertilizers from the manufacturer/importers after their receipt in the districts as inputs for manufacturing mixture fertilizers for agricultural purpose. The respective State Governments monitor the activities of manufacturers of mixture fertilizers.

Under the Nutrient Based Subsidy (NBS) Policy for Phosphatic & Potassic (P&K) fertilizers, being implemented w.e.f. 1.4.2010, the Government provides a fixed amount of subsidy, decided on annual basis, on each grade of subsidized P&K fertilizers depending upon their nutrient content. The fertilizer companies have been allowed to fix Maximum Retail Prices (MRPs) of P&K fertilizers at reasonable level. For these fertilizers, the farmers are paying much less than the delivered cost. The amount of applicable subsidy is printed alongwith the MRP of the subsidized fertilizers on each bag sold in the market.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha today.

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NSK/DB