India is considering a $3.8 billion fertiliser subsidy boost -

12th Oct,2021

India is considering a $3.8 billion fertiliser subsidy boost -


According to persons familiar with the situation, India is set to offer an additional Rs 28,600 crore ($3.8 billion) to fertiliser businesses as compensation for supplying supplies to farmers at below-market pricing. According to the persons, a cabinet meeting chaired by Prime Minister Narendra Modi might approve the increased subsidy for winter-sown crops as soon as this week. They asked not to be identified because the topic is private. The fixed subsidy on Di-ammonium Phosphate has been increased from Rs 1,200 to Rs 1,650 per bag.
The ruling Bhartiya Janata Party is eager to win back farmers after a year of intense opposition to new legislation that allow private enterprises to directly purchase agricultural output. Farmers are concerned that the new restrictions will eliminate the government's guaranteed crop purchase programme. Modi's party will need their help to win vital state elections next year.
The idea also aims to somewhat offset the rise in DAP and nitrogen, phosphorus, and potassium fertiliser prices on the international market. Increased fertiliser subsidies in the current fiscal year will increase spending to beyond Rs 1 lakh crore, up from Rs 80,000 crore in the February government budget.